Ronin Co-Founder Announces Economic Model Adjustment: Passive Staking Rewards to Be Canceled, Shifting to Token-Weighted Governance

Odaily News: Ronin has released an economic model adjustment plan, stating that with the network expected to transition to a Layer2 by the end of March, passive staking rewards and the original validator system will be canceled. They will be replaced by a "Proof of Distribution" mechanism, providing targeted incentives to builders who make tangible contributions to the ecosystem.

The announcement also stated that the Ronin Treasury will enhance its financial strength by increasing revenue sources such as RoninMarket transaction fees, sequencer profits, and ecosystem application and game tokens. Regarding governance, control of the treasury will shift from validators to a voting mechanism based on RON token weight, used to deliberate on activities such as buybacks, investments, and DeFi-related initiatives.