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Ronin Co-Founders Announce Adjustments to the Ronin Economic Model: Passive Staking Rewards to Be Eliminated and a Shift to Token-Weighted Governance
Svmuu News: Ronin has announced adjustments to its economic model, stating that as the network is expected to transition to Layer 2 by the end of March, passive staking rewards and the existing validator system will be discontinued. These will be replaced by a "proof-of-contribution" mechanism that provides targeted incentives to builders who make tangible contributions to the ecosystem. The announcement also noted that the Ronin Treasury will strengthen its financial position by increasing revenue streams, including higher transaction fees from RoninMarket, sequencer revenue, and tokens from ecosystem applications and games. Regarding governance, control of the treasury will shift from validators to a voting mechanism based on RON token weight, which will be used to deliberate on buybacks, investments, and DeFi-related activities.
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