Yield Guild Games: RON Staking
Yield Guild Games (YGG) has been a validator of the Ronin blockchain since July 2022, playing a crucial role in securing and maintaining the network. With the launch of delegated proof-of-stake (DPoS) in April 2023, the staking ecosystem has been further democratized, allowing more participants to contribute to the network’s security while earning rewards. This article will explore the Ronin staking offer and how it benefits the YGG community, the differences between running a node and becoming a validator, and the current state of the Ronin validator ecosystem.
Understanding Ronin Staking
Ronin staking is the process of locking up a specific amount of RON tokens to support the security and operation of the Ronin network. In return, participants earn rewards in the form of newly minted RON tokens. The Ronin blockchain uses a delegated proof-of-stake (DPoS) consensus mechanism, which is a variation on traditional proof-of-stake (PoS) systems designed to increase network security and move towards decentralization by introducing vetted parties to act as validators and allowing token holders to delegate their staking power to their chosen validator.
In the Ronin DPoS system, validators are responsible for proposing and validating new blocks, maintaining the network’s security, and ensuring its smooth operation. Token holders can delegate their RON tokens to a validator of their choice, and in return, they receive a portion of the rewards earned by the validator.
Running a node involves participating in the Ronin network by hosting and maintaining a copy of the blockchain. Node operators help relay transactions and contribute to the overall health of the network. Becoming a validator, on the other hand, requires meeting specific criteria, such as possessing a minimum of 250,000 RON tokens. Validators have additional responsibilities, like proposing and validating new blocks, and they earn rewards for their efforts.
The Current State of the Ronin Validator Ecosystem
The Ronin network currently has 22 validators, comprising 12 governing validators and 10 validators based on the highest amount of RON staked on any given day. At the time of writing, a node would need a minimum of 5.5 million RON to be selected as a validator for the day. The governing validators include well-known organizations like YGG, Google, Nansen and Animoca Brands, as well as early Axie Infinity community leaders such as Coco Bear, AK, Aur, Artic and Cloudwhite.
At present, there are over 12,000 delegators and more than 125 million RON staked across these 22 validators. Validators can also set a commission rate, which can range from 0% to 20%, for providing the delegation services to users. Each validator earns rewards, which are then shared proportionally with those who delegated RON to that validator. The annual percentage rate (APR) for staking rewards ranges from 15.94% to 23.79%, depending on the validator.
YGG’s Role as a Governing Validator and Its Impact on the Community
The RON earned through YGG’s validator commission of 20% and the rewards it earns from staking its own RON holdings are channeled back into the YGG treasury. These funds are then used to support YGG community programs, ensuring that all holders of the YGG token and Guild Badge derive value from YGG’s role as a governing validator.
Owl of Moistness, co-founder of YGG and very early Axie Infinity community developer, highlights the importance of having a diverse set of validators. “The mix of validators, from organizations like us or Google to individuals like Coco or AK, ensures that each individual RON holder has options when selecting a validator they wish to delegate to,” said Owl. “Our goal is to enrich Ronin’s gaming ecosystem so it can continue to thrive and grow while ensuring that the YGG community can participate in and benefit from the role we play in securing the Ronin network.”
For anyone looking to participate in RON staking, you can view the Ronin Chain official staking tutorial for a detailed explanation.
For more information on YGG, read the YGG whitepaper here. Join the YGG Discord or follow us on Twitter for future updates.
