Ronin co-founders announced an adjustment to the economic model, which will eliminate passive staking rewards and shift to token-weighted governance

Ronin announced an adjustment plan for 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 original validator system will be eliminated, replaced by a "proof of allocation" mechanism that provides targeted incentives to builders who make actual contributions to the ecosystem.

The announcement also stated that the Ronin treasury will enhance its financial strength by increasing revenue sources such as transaction sharing from Ronin Market, sorter earnings, and new income from ecological 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, which will be used to review buybacks, investments, and DeFi-related activities.

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