Ronin co-founders announced an economic model adjustment, eliminating passive staking rewards and shifting to token-weighted governance.

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According to ChainCatcher, Ronin has released an economic model adjustment plan, 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 canceled and replaced with a "proof-of-distribution" mechanism to provide targeted incentives to builders who make actual contributions to the ecosystem.

The announcement also stated that the Ronin Vault will strengthen its financial strength by increasing Ronin Market transaction revenue, sorter rewards, and new revenue streams such as ecosystem applications and game tokens. In terms of governance, control of the Vault will shift from validators to a voting mechanism based on RON token weights, used to review buybacks, investments, and DeFi-related activities.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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