Ronin Announces Economic Model Adjustments Ahead of Layer 2 Transition

Ronin has unveiled a new economic model as it prepares to transition to a Layer 2 network by the end of March. According to ChainCatcher, the changes will eliminate passive staking rewards and the existing validator system, replacing them with a 'proof of contribution' mechanism. This new approach aims to provide targeted incentives to contributors who make significant impacts on the ecosystem. The announcement also detailed plans to strengthen the Ronin treasury by increasing revenue from Ronin Market transaction shares, sequencer earnings, and new income sources from ecosystem applications and game tokens. In terms of governance, control of the treasury will shift from validators to a voting mechanism based on RON token weight. This system will be used to deliberate on buybacks, investments, and DeFi-related activities.