Ronin to Reform Economic Model, Shift from Passive Staking Rewards to Token-Weighted Governance

ChainCatcher reports that Ronin has announced on X that, as the network prepares to upgrade to an Ethereum Layer 2 in late March, it will implement a series of economic model reforms, including the elimination of passive staking rewards and the legacy validator system, transitioning to a "reward-by-contribution" mechanism that provides targeted incentives to impactful builders. The treasury will expand its revenue streams through increased fee splits from Ronin marketplace transactions, sequencer profits, and token revenues generated by Ronin applications and games. Governance authority will shift from validators to a token-weighted voting system, with RON holders voting on treasury buybacks, investments, and DeFi activities. Ronin stated that the current RON token supply dynamics present significant issues requiring comprehensive reform. The new treasury mechanism will increase the proportion of protocol NFT and ERC20 transaction volume flowing into the treasury, incorporate net sequencer profits into the treasury, and redirect approximately 90 million RON previously allocated to passive staking into the treasury. Five million RON annually will be allocated from the former staking reward pool to PoD rewards, with criteria including TVL, gas consumption, user retention, and transaction volume. The team stated that these structural reforms aim to strengthen RON’s fundamentals, incentivize builders, and create a healthier, more resilient token economy.