Jihoz.ron (@Jihoz_Axie): Ronin's Economic Evolution

Ronin's Economic Evolution Key Points: Destroying inflation: With the move to an L2 (ETA is late March), Ronin will be removing passive staking rewards and the outdated validator system in favor of proof of distribution: targeted rewards for builders making an impact The Ronin treasury will be bolstered by new revenue streams such as a higher share of Ronin Market volume, sequencer profits, and tokens from Ronin applications/games RON Governance: Control of the treasury is shifting from the governing validators to a token-weighted voting system to review treasury buybacks, investments, and Defi activity Ronin’s Economic Evolution Ronin is evolving. For years, we relied on a small group of validators and early tokenomics to bootstrap growth. It worked. Ronin is currently home to the highest quality crypto games. The network has high activity and a fervent core fan base. One thing that hasn’t worked is the supply dynamics of RON and we believe drastic and urgent change is needed here. As Ronin upgrades to an Ethereum Layer-2, which is currently expected for late March, we have a rare window to correct structural weaknesses and align incentives for long-term success. A healthy RON starts with clear, accountable tokenomics that properly capture value from on-chain activity and feed it back to the ecosystem. Ronin is a network. Networks grow by compounding. However the current systems haven’t been working towards a compounding network value of RON. Today, we are presenting forth a vision for the RON token that benefits more explicitly from Network growth while also making the network work over time. The Treasury: Where Value Accumulates The Ronin Treasury is a novel mechanism, inspired by the success of the Axie Treasury. However, the link between chain activity and Treasury value hasn’t been strong enough. To address this, we’re increasing the percentage of protocol NFT and ERC20 volume flowing into the Treasury. This supports RON while adding entirely new revenue streams. Bolstered Treasury revenue streams: • Ronin Marketplace rebalance: Fee split adjusted to 1.25% to the Treasury and 1.25% to Sky Mavis (up from 0.5% to Treasury / 2% to Sky Mavis). • Sequencer profits: Net sequencer profits (total gas revenue minus Blob fees and Optimism’s cut) will flow to the Treasury. • Sky Mavis PoD: 100% of Sky Mavis Proof-of-Distribution rewards will be directed to the Treasury for 2026 (to be reviewed annually). • Staking rewards reallocation: The remaining ≈90M RON that was set aside for passive staking will move to the Treasury. From Passive Emissions to Targeted Rewards We once allocated 180M RON to secure the network. As an L2, we inherit the security of Ethereum and these rewards are no longer necessary. We propose ending all passive staking rewards and shifting toward mechanisms that create value sinks and support a deflationary trajectory for RON. From now on, incentives go to those who move the needle via the Proof-of-Distribution (PoD) system. Proof-of-Distribution: Rewarding the Work PoD is a mechanism for allocating RON rewards to the most talented builders on the network. It rewards four things: TVL: Real liquidity. Gas Spent: Real demand. Retention: Real users holding more than 10 RON. Volume: NFT and ERC20 throughput. From the pool formerly used for staking rewards, 5M RON per year will fund PoD. The loop is simple: build well → get rewarded → reinvest → scale. Governance by Stakeholders The Treasury is the engine; RON holders will steer it. We are shifting to token-weighted governance and away from the validator-only model. If you hold RON, you have a say. Holders will vote on: How the Treasury spends or uses its capital Adjustments to PoD rewards. Token burns or distributions to holders. Conclusion A strong token is the foundation of a strong ecosystem. Beyond these protocol changes, the team and founders will work tirelessly to restore attention to RON: improving token access and liquidity, simplifying onboarding, and engaging institutional partners. These structural changes are designed to strengthen RON’s fundamentals and energize Ronin’s builders, players, collectors, and holders. At four years old, Ronin must evolve. These steps aim to create a healthier, more resilient token economy that rewards builders, aligns incentives, and scales with real usage.