What is Render Network (RNDR)?

The Render Network helps connect individuals seeking rendering services with those who have unused Graphics Processing Units (GPUs) available for processing. By linking their GPUs to the Render Network, owners can undertake and complete rendering tasks for others using OctaneRender. When users require rendering work, they can send RNDR (Render Tokens) to the assigned render operator, and a small portion of RNDR is retained by OTOY to facilitate the transaction and support the functioning of the Render Network.

Upon registering their idle GPUs on the Render Network, these GPU owners become "Node Operators" and have the opportunity to earn RNDR Tokens. They achieve this by accepting rendering jobs from "Creators," who are individuals seeking rendering services. Creators submit their files to the Render Network, which then assigns them to the Node Operators. To sustain the network and enable smooth transactions, Render receives a small percentage of the RNDR distributed as compensation.

What is RNDR token?

RNDR is an ERC-20 utility token that provides “Creators” with the ability to leverage unused GPU capacity run by “Node Operators” on the Render Network. The RNDR token serves as form of payment for rendering services. There is a maximum supply of ~536 million units.

How does RNDR compare to Bitcoin?

RNDR differs from Bitcoin in a few important ways. First, Bitcoin is a “coin” and RNDR is a “token.” That is because Bitcoin powers the Bitcoin blockchain, and it is mined by a decentralized network of computers that solve complicated math puzzles to verify transactions.

By contrast, RNDR is a token that runs on the Ethereum blockchain. On Ethereum, ETH is staked to process transactions on the network, including RNDR transactions. RNDR is what is known as an ERC-20 token, the name applied to the generic token standard for the Ethereum blockchain.

Being an ERC-20 token has perks. Blockchains aren’t great at speaking to each other—you can’t get an Ethereum contract to work with a Bitcoin smart contract without some complicated engineering. However, it’s very easy for ERC-20 tokens to speak to one another, which means that RNDR can be used in most other decentralized finance applications.

Unlike Bitcoin, RNDR is a utility token. While, like Bitcoin, RNDR can be used as a means of payment or a store of value, its market price may be very volatile and so it may not be useful for payments or storing value.

Finally, RNDR’s market capitalization is smaller than Bitcoin’s. As of May 2023, RNDR’s market capitalization was estimated to be $975 million, as compared to Bitcoin’s market capitalization of $560 billion. 

Risk statement

Before trading any crypto assets it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset. First and foremost:

No Canadian securities regulatory authority has expressed an opinion about RNDR, including an opinion that RNDR is not itself a security and/or derivative.

Wealthsimple has performed a legal assessment of RNDR prior to making it available on Wealthsimple Crypto and has concluded that RNDR is not and is unlikely to be deemed a security or derivative. However, there is a risk that this conclusion could change in the future and the impact of this on an asset’s value is outlined in our Product Disclosure.

We evaluated RNDR based on publicly available information, including (but not limited to):

• The creation, governance, usage and design of RNDR, including the source code, security and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that first created RNDR;
• The supply, demand, maturity, utility and liquidity of RNDR;
• Material technical risks associated with RNDR, including any code defects, security breaches and other threats concerning RNDR and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them; and
• Legal and regulatory risks associated with RNDR, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of RNDR.

Like all other crypto assets, there are some general risks to investing in RNDR. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk, electronic trading risk and cyber security risk. Each of these risks are described in more detail in our in-app Product Disclosure.

RNDR also presents an elevated short history risk, and in contrast to networks like Bitcoin and Ethereum, where multiple parties participate in development, the Render Network team directs ongoing development of the software underlying the RNDR network.

Further, the Render Network, and the RNDR community are not under any legal or regulatory obligation to disclose material information to the public regarding their activities. Holders of RNDR have no recourse to RNDR or Wealthsimple if RNDR declines in value for any reason.

We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading RNDR. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.

WDA is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Digital Assets Inc. dated June 18, 2021. Please be aware that the statutory rights of action for damages and the right of rescission in the securities legislation of each province and territory of Canada would not apply to a misrepresentation in this Statement.

Last updated: June 29, 2023