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Much like the Chaos Emeralds, the World Rings possess great amounts of power and can cause transformations that are similar to a super transformation. Unlike the Chaos Emeralds, however, the World Rings can initiate a transformation even when not all the rings are used, but with fewer benefits. For example, while Erazor Djinn uses all seven of the rings to transform into the incomplete Alf Layla wa-Layla, Sonic required only the red, purple, and green rings to become Darkspine Sonic. This form is similar to Super Sonic in power, except Darkspine Sonic is not invincible, and his power is not reliant on Ring energy. The nature of these transformations however, seem to have a strong influence on the mind of those who use the World Rings; Erazor Djinn was driven insane by his transformation, and Darkspine Sonic became more ferocious, demonic, ruthless and violent than in his normal form (although this is presumably due to using the rings of Sadness, Hatred and Rage).

It seems that the individual rings have some powers of their own. For example, the water blue ring could create storms and rain and the white ring could open the doors to the Erazor Djinn's palace. According to the Erazor Djinn, the seven rings bind together the pages that make up the world of the Arabian Nights.

When all of the World Rings are collected, they can produce catastrophic results. Sonic fears their energy could open the very Gates of Hell itself. For someone to unlock the power and complete control of the World Rings, the life of the collector of the rings must be sacrificed as a part of a ritual. However, if another life is sacrificed instead of the collector, the ritual will be somewhat fulfilled, but the user will be unable to control the transformation they grant, such as when Erazor Djinn ended up killing Shahra, instead of Sonic (who collected the rings) and ended up transforming into the monstrous and incomplete Alf Layla wa-Layla.

Each World Ring has a certain intense emotion sealed up inside of them (Prayers/hope, sadness, rage, hatred, joy, pleasure, wishes/desires), each of which embodies one of the emotions that makes up the stories of the Arabian Nights. Just by touching the rings causes a powerful jolt that makes someone feel, as Sonic describes it, "a whirlpool of emotions" and is the reason why people using the World Rings become more emotionally unstable. Those who inhabit the world of the Arabian Nights are unable to touch the rings physically, as they will simply go right through them. Only people who are not natives to the world of the Arabian Nights are able to touch them. The rings also seem to respond to their specific emotions: when Sonic witnessed the death of Shahra, the rings of Rage, Hatred, and Sadness burst out of Alf Layla wa-Layla and were absorbed into Sonic since they were the emotions he was feeling.