Ronin co-founders announce that the Ronin economic model adjustment will eliminate passive staking rewards and shift towards token-weighted governance

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CoinWorld News: Ronin co-founders have released an adjustment plan for the Ronin economic model. As the network is expected to upgrade to Ethereum Layer 2 by the end of March, Ronin will cancel passive staking rewards and the original validator mode, shifting to a Proof of Distribution mechanism. This will provide targeted incentives based on metrics such as TVL, gas consumption, user retention, and NFT and ERC20 trading volume. An annual allocation of 5 million RON will be used for this mechanism. Additionally, approximately 90 million RON originally used for passive staking will be transferred to the treasury. Treasury income will also include adjustments to RoninMarketplace transaction fees, profits from the sequencer, and distribution revenue related to Sky Mavis. In terms of governance, control of the treasury will shift from validator mode to a voting mechanism based on RON token weight, used to review buybacks, allocations, and reward adjustments.

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