Ronin Shifts Economic Model to Prioritize Builder Incentives

• Ronin is overhauling its economic model by removing passive staking rewards and validator-led governance to prioritize incentives for developers and builders based on contribution metrics according to the announcement.
• Treasury revenue will now come from transaction fees, sequencer profits, and app/game income, with redirected tokens supporting token-weighted governance for RON holders.
• The reforms will redirect 90 million RON previously allocated for staking to the treasury, and 5 million RON will be distributed annually based on metrics like TVL and user retention according to the report.

Ronin has announced a major restructuring of its economic model, shifting away from passive staking rewards and validator-led governance to incentivize impactful builders and developers. The network will eliminate passive staking rewards and the original validator model, transitioning to a Proof of Distribution mechanism.

This new system will allocate five million RON tokens annually to incentivize metrics like total value locked (TVL), gas consumption, user retention, and trading volumes of NFTs and ERC20 tokens. Approximately 90 million RON tokens previously used for passive staking will be redirected to the treasury.

Treasury revenues will also be bolstered by adjustments in Ronin Marketplace fees, sequencer profits, and SkyMavis-related distribution proceeds. Governance will shift from a validator-based model to a RON token-weighted voting system, allowing token holders to influence decisions on buybacks, allocations, and reward adjustments.

What is Ronin's new economic model?

Ronin is transitioning to a token-weighted governance model and eliminating its legacy validator and staking systems. The new system will generate increased treasury revenue through transaction fees, sequencer profits, and income from applications and games on the platform according to the analysis.

RON holders will now have token-weighted voting rights, allowing them to influence decisions around treasury management, buybacks, and DeFi activities. These changes are intended to create a more resilient and sustainable token economy, with incentives focused on long-term value creation rather than short-term staking participation according to the report.

How will treasury revenue be generated?

The new model will generate revenue through transaction fees, sequencer profits, and income from applications and games on the platform. Treasury revenues will also be bolstered by adjustments in Ronin Marketplace fees, sequencer profits, and SkyMavis-related distribution proceeds according to the announcement.

Approximately 90 million RON tokens previously used for passive staking will be redirected to the treasury. The reforms will redirect 90 million RON previously allocated for staking to the treasury, and 5 million RON will be distributed annually based on metrics like TVL and user retention according to the data.

What are the implications for RON holders?

RON holders will now have token-weighted voting rights, allowing them to influence decisions on buybacks, allocations, and reward adjustments. The reforms will redirect 90 million RON previously allocated for staking to the treasury according to the update.

The new system will allocate five million RON tokens annually to incentivize metrics like TVL, gas consumption, user retention, and trading volumes of NFTs and ERC20 tokens. These changes are intended to create a more resilient and sustainable token economy according to the analysis.

The reforms will redirect 90 million RON previously allocated for staking to the treasury, and 5 million RON will be distributed annually based on metrics like TVL and user retention. These changes are intended to create a more resilient and sustainable token economy according to the report.