Ronin plans to adjust its economic model, eliminating passive staking rewards and shifting to token-weighted governance.

PANews reported on March 4th that Ronin announced on its X platform that, with the network upgrade to Ethereum Layer 2 in late March, Ronin will implement a series of economic model reforms. These include eliminating passive staking rewards and the old validator system, shifting to a "contribution-based" mechanism that provides targeted rewards to influential builders. The treasury will increase its revenue streams, including increased Ronin market transaction fee sharing, sorter profits, and token revenue from Ronin applications and games. Governance 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 token supply dynamics of RON are problematic and require a complete overhaul. The new treasury mechanism will increase the proportion of protocol NFT and ERC20 transaction volume flowing into the treasury, incorporate sorter net profits into the treasury, and transfer approximately 90 million RON previously used for passive staking to the treasury. An additional 5 million RON will be allocated annually from the original staking reward pool for PoD rewards, based on TVL, Gas consumption, user retention, and transaction volume. The team stated that these structural reforms aim to strengthen RON's fundamentals, incentivize builders, and make the token economy healthier and more resilient.