Author: hitesh.eth, Crypto KOL

Compiled by: Felix, PANews

The distributed rendering network Render Network has destroyed more than 269,000 RNDR in the past 30 days. This article will give you a quick overview of the operating mechanism and development potential of Render Network.

PANews Note: The opinions expressed in this article are solely those of the author and should not be considered investment advice. DYOR.

What is Render Network?

Render Network's parent company, OTOY, is a 15-year-old American cloud graphics company. OTOY's rendered films have won Oscars and have been guided by co-founders of Google and Mozilla. The Render Network that OTOY is developing is an encrypted p2p network for distributed GPU computing in the 3D rendering and AI industries.

What is 3D rendering?

High-end 3D graphics in animated films and computer games are created by processing 3D models using GPU computing devices. The graphics processing process that provides more details to 3D models is called rendering.

Competitive Advantage

Render Network rendered over 4.6 million frames in the first half of 2023 at an average cost of $20, which is cheaper than other rendering platforms.

RNDR Token

Render Network allows users to contribute idle GPU resources to their network and receive compensation in RNDR tokens after successfully completing rendering jobs. RNDR is a multi-functional token with governance, payment, incentive and other functions.

New Token Economics

Render Network made changes to RNDR’s token economics in February 2023.

  • Maximum supply: 644.2 million

  • Circulation: 372 million

  • Proportion of future incentives: 16.67%

By February 2024, RNDR's annual issuance will be 9%, and by 2028 it will drop to 4%. Render Network has introduced a "Burn-Mint-Emission" model, which allows creators to pay node operators for their work by destroying RNDR and minting Credit. When nodes provide services, they no longer directly receive income from creators who purchase rendering services, but are rewarded with newly minted tokens. (Note: Previously, creators initiated rendering tasks and used fiat currency to purchase Credit, or RNDR for payment, 1 credit = 1 euro)

Demand drivers

  • Render Network has partnered with io.net to leverage GPU infrastructure for AI/ML related work.

  • Launch of Octane X in Apple stores.

  • Integration with Cinema4D/Redshift

Rendering Flywheel

Creators buy RNDR, burn it and mint Mint Render Credit-->Node operators complete the work-->Node operators get RNDR rewards from the reserved supply-->Creators and liquidity providers also get certain token incentives-->More rendering work burns more RNDR.

On-chain insights

  • Node operators: 597

  • Total render jobs: 943,385

Render Network's rendering workload has grown 32% in the past 3 months. Render Network destroyed 269,043 tokens in the past 30 days, while 760,567 new tokens were issued.

RNDR's current monthly net destruction is about 269,000 tokens, while the current monthly issuance is about 760,000 tokens. However, from March 2023 to 2024, the monthly issuance will be reduced to 492,000 tokens.

RNDR could potentially experience deflation if demand for rendering work doubles in the next 6 months. Given the rapid development of the Render Network and its entry into the large metaverse and AI markets, the number of rendering users is expected to grow 10-20 times in the next 2-3 years.

With the right incentives and deflation mechanisms, the author expects RNDR to attract more market demand, which will eventually be reflected in the RNDR token price.

Disclaimer: The information shared by the author does not constitute any investment advice.

Related reading: Rethinking after the full month of Apple Vision Pro release: XR, RNDR and the future of spatial computing