Axie Infinity and Ronin Network Introduce Security and Tokenomics Upgrades

• Ronin Network is enhancing its security post a $625 million hack by increasing validator nodes and introducing a $1M bug bounty program.
• Axie Infinity is restructuring its tokenomics with the introduction of the bAXS token to stabilize supply and improve user engagement.
• The broader GameFi market has seen a 2% decline in market cap to $9.35 billion, with projects like Pixiland shifting away from Web3 models due to regulatory and market challenges.

Ronin Network is responding to the cybersecurity risks highlighted by the $625 million hack by increasing the number of validator nodes from 9 to 11. This move is part of a broader plan to redesign the Ronin Bridge, with completion expected by mid to late May. Additionally, the network has launched a $1 million bug bounty program to engage white hat hackers in identifying and reporting vulnerabilities.

Axie Infinity is transitioning AXS rewards into bAXS, a new app token tied to user accounts, to promote long-term engagement and reduce bot farming. This tokenomics overhaul is part of a broader plan for 2026 and marks the first of several structural changes to stabilize the ecosystem. The AXS token saw a 30% price rebound in early January 2025, but derivatives data indicates bearish sentiment with a negative funding rate and a long-to-short ratio below one.

The broader GameFi sector faces regulatory uncertainty, with other projects like Pixiland pausing Web3 features. Pixiland: Age of Heroes announced it would exit Web3 entirely, converting NFTs to off-chain collectibles and halting crypto payments due to regulatory challenges. The success of the bAXS token will depend on its adoption and integration into the ecosystem, particularly in governance and staking.

What Security Measures Has Ronin Implemented?

Ronin Network is enhancing security by increasing validator nodes and launching a $1 million bug bounty program. These measures aim to prevent future breaches and rebuild trust with users. Developers plan to expand validator nodes further within three months, with a redesigned Ronin Bridge expected to be completed by mid to late May. This timeline reflects a commitment to long-term security and resilience in the face of recent challenges.

The bug bounty program is designed to attract white hat hackers to identify and report vulnerabilities. This approach has been effective in other blockchain projects and is expected to contribute to the network's overall security posture. The increased number of validator nodes will also enhance the network's decentralization and resistance to attacks.

How Is Axie Infinity Restructuring Its Tokenomics?

Axie Infinity is transitioning AXS rewards into a new app token, bAXS, to stabilize supply and encourage user engagement. This token is tied to user accounts and can be staked, spent, or sold, promoting organic growth and reducing bot farming in the Origins game mode. The launch of bAXS has contributed to a 30% price rebound for the AXS token, although derivatives data indicates bearish sentiment with a negative funding rate and a long-to-short ratio below one.

The success of bAXS will depend on its adoption and integration into the ecosystem, particularly in governance and staking. Axie Infinity has also introduced a governance proposal to stake 2,829 ETH from the community treasury, signaling a more active capital management strategy. These changes reflect a strategic shift in Axie Infinity's approach to tokenomics and aim to provide long-term sustainability for the project.

The broader GameFi market has seen a 2% decline in market cap to $9.35 billion, with smaller-cap tokens like World of Dypians (WOD) and Pixiland experiencing market volatility and regulatory challenges. Projects like Pixiland have exited the Web3 model and converted their NFTs to off-chain collectibles, highlighting the impact of regulatory uncertainty on the sector.