Ronin: Consensus algorithm

TLDR

Ronin on a mix of Proof of Authority (PoA) and Delegated Proof of Stake (DPoS) to gradually become more decentralized with more PoA and less of DPoS.

Consensus mechanism

Initial setup: Proof of Authority (PoA)

Ronin initially employed PoA where transactions are verified by pre-selected validators, providing fast but centrally controlled validation.

Transition to Delegated Proof of Stake (DPoS)

To advance decentralization, Ronin has integrated DPoS, allowing token holders to delegate their stakes to validators, enhancing the democratic and decentralized validation process.

DPoS features:

• Validator selection: Validators are chosen through token holder votes, increasing their stakes and potential to be selected as validators.
• Validator roles: Consists of Governing Validators (selected through PoA) and Standard Validators (chosen through DPoS by token stake).
• Block production: Validators take turns producing blocks, maintaining elements of PoA for continuity.

Validator dynamics

• 22 Validator slots: 12 are Governing Validators, and 10 are open to any qualifying Standard Validators.
• Daily updates: Validator stakes are updated daily, with the top 10 by stake becoming Standard Validators.
• Delegation: Token holders can delegate stakes to influence validator selection.

Staking and rewards

• Token: RON.
• Minimum stake: 250,000 RON to become a Validator Candidate.
• Reward distribution: Validators earn rewards from transaction fees and a portion of the staking rewards, distributed daily via smart contracts.

Security measures

• Clone attack prevention: Requires a supermajority to confirm transactions, minimizing the risk of block height duplication attacks.
• Slashing mechanisms: Penalties for validators engaged in malicious activities, enhancing network integrity.

Governance and operations

• Bridge operators: Manage asset transfers between Ronin and other EVM-compatible chains, with specific rewards and penalties.
• Maintenance and unavailability: Systems in place for maintenance modes and slashing for non-performance, ensuring operational continuity.

Final remarks

Ronin's hybrid consensus approach, combining PoA and DPoS, aims to balance efficiency with increased decentralization, reflecting the evolving landscape of blockchain governance.