Ronin Introduces Security Upgrades and Axie Infinity Restructures Tokenomics

• Ronin Network is enhancing security after a $625 million hack, increasing validator nodes and implementing stricter protocols.
• Axie Infinity is restructuring its tokenomics with the launch of bAXS to stabilize supply and improve user engagement according to reports.
• The GameFi market has seen a 2% decline in market cap to $9.35 billion, with projects like Pixiland shifting away from Web3 due to volatility and regulatory pressures as data shows.

The Ronin Network, which underpins Axie Infinity and other blockchain gaming projects, is addressing significant cybersecurity risks following a major hack in 2024 according to analysis. Developers are expanding the validator node count from 9 to 11 and plan to increase it further within three months. A $1 million bug bounty program has been introduced to attract white hat hackers and prevent future breaches. The Ronin Bridge remains closed during a redesign, which is expected to take until mid to late May.

Axie Infinity has introduced a new token, bAXS, as part of a broader tokenomics overhaul aimed at stabilizing supply and improving user engagement according to reports. The new token is tied to user accounts and can be staked, spent, or sold. This move is designed to reduce bot farming and encourage organic growth within the ecosystem. The AXS token has seen a price rebound of over 30% in early January 2025, but derivatives data suggests a bearish outlook with a negative funding rate and a long-to-short ratio below one according to analysis.

The broader GameFi market continues to face challenges, with a 2% decline in market cap to $9.35 billion as reported. Projects like Pixiland have paused Web3 features and are shifting to a Web2 model due to regulatory uncertainty and market volatility. Existing tokens and NFTs in Pixiland are being converted into in-game currency and off-chain collectibles. This trend reflects a broader shift in the industry, with companies reassessing their reliance on blockchain-based systems.

Is the bAXS Token Sustainable in the Long Term?

The success of bAXS will depend on its adoption and integration into the Axie Infinity ecosystem according to analysts. Analysts suggest that the token's performance will be influenced by factors such as user engagement, governance participation, and broader market conditions. The AXS token has shown mixed signals, with a 7% decline observed after a recent surge. Derivatives data indicates more traders expect a price drop, with a long-to-short ratio of 0.82 according to market analysis.

What Drives Ronin's Security Challenges?

The Ronin Network has faced significant security challenges, including a $625 million hack attributed to North Korean groups. The attack involved social engineering of validator nodes and led to a 90% drop in the network's market cap from 2024 highs. Developers have implemented measures such as increasing validator nodes, enhancing internal procedures, and introducing a bug bounty program. These efforts are aimed at improving the network's resilience and regaining user trust.

How Are GameFi Projects Adapting to Market and Regulatory Changes?

GameFi projects are increasingly adapting to market and regulatory changes by shifting their business models according to reports. Pixiland, for example, has paused all Web3 features and is converting existing tokens and NFTs into in-game currency and off-chain collectibles. This move reflects a broader trend in the sector, with companies reassessing their reliance on blockchain-based systems due to volatility and regulatory uncertainty. The Web3 dashboard in Pixiland is scheduled to shut down by March.

The GameFi market has also seen volatility, with Axie Infinity's AXS token experiencing sharp price swings. This week's developments highlight the ongoing evolution and uncertainty in the space as companies reassess their strategies for blockchain-based gaming. The launch of the Truflation GameFi Index provides investors with real-time metrics on market cap, volume, and user activity for platforms like Immutable (IMX) and Ronin (RON) according to analysis.