* Top drone pilots compete for hardware, bragging rights

* Ukraine has promoted "gamification" of drone warfare

* Competition allows communication between soldiers,

manufacturers

* Manufacturers adapt drones based on frontline feedback

By Daniel Flynn and Andriy Perun

TRUSKAVETS, Ukraine, May 23 (Reuters) - In the sky over

western Ukraine, a bullet-shaped P1-SUN interceptor drone dived

towards its target as dozens of soldiers looked on. A cheer went

up as it cut through a tow line from another drone to a balloon,

which drifted away.

Ukraine's most skilled military drone pilots squared off

this week not against Russia, but against each other in a

competition to win bragging rights and state-of-the-art hardware

for their units.

Drone technology has transformed the war in Ukraine. Young

men using video game consoles to operate strike drones packed

with explosives - sometimes from command centres far behind the

front line - are deeply feared by enemy soldiers.

This week's "Wild Drones" competition - held in fields

outside the spa town of Truskavets - gathered pilots from 19 of

Ukraine's best units and manufacturers of drones used on the

front line.

"This is an opportunity for them to communicate with each

other a little, to learn something or share something with

someone, and to see from manufacturers what new products are

available," said "Grey", the sergeant major of the Black Raven

drone battalion of the 93rd Mechanized Brigade, an organizer of

the event. He asked to be identified by his military call sign.

POINTS FOR KILLING RUSSIANS

Ukraine has promoted the "gamification" of the war. Last

year, it introduced a points system for verified drone kills.

Units can spend these points to purchase equipment on the

military's DOT-Chain and Brave1 Market online platforms

nicknamed "Amazon ( AMZN ) for war".

"It's a bit like choosing a car. They all do different

things," said one soldier from the first battalion of the 22nd

Separate Mechanized Brigade, who asked not to be identified.

The system helps to motivate soldiers by fostering

competition and to ensure resources are allocated efficiently to

the best pilots, officials say.

Russia's cash bonus system incentivizes the destruction of

equipment. Ukraine's points system also rewards human targets,

as Defence Minister Mykhailo Fedorov seeks to bleed Moscow's

military by killing or seriously wounding 50,000 soldiers per

month. Ukraine puts the curent number of Russian soldiers killed

or seriously wounded each month at about 35,000, a figure that

Moscow denies.

The event, founded two years ago, offered a break from the

front line, where some participants have been deployed since

Russia's invasion in 2022. There was a relaxed atmosphere, with

a barbecue and networking party; some participants brought their

wives and families.

Several officers said their units were in regular contact

with drone manufacturers to request improvements.

"It's a constant, ongoing process," said "Dym", the call

sign of the commander of the about 400-strong Black Raven unit.

"If we have one version of a drone today, in three months it

could be a completely different drone."

The growing flight range of drones is constantly expanding

the "Kill Zone" - currently around 15 km (nine miles) either

side of the front line - where soldiers and vehicles can quickly

be attacked by drones.

Several participants said that drones such as the Vampire

heavy bomber - made by Ukrainian defence tech company Skyfall -

were also being used to carry food, water and medical supplies

into the Kill Zone to reduce the number of humans deployed

there.

Winners in each category at the event received three Vampire

drones, plus batteries and systems.

A company spokesman, who asked to be identified by the call

sign "Ares", said Skyfall had the capacity to produce more than

10,000 drones per day and was constantly receiving feedback from

the frontline.

"The biggest demand is automisation, so fewer people can

operate more drones," he said.

(Editing by Timothy Heritage)