Ronin to End Passive Staking, Shift to Contribution-Based Rewards Ahead of Ethereum L2 Transition in Late March

Ronin will overhaul its economic model before transitioning to an Ethereum Layer 2 network in late March, scrapping passive staking rewards and the legacy validator framework in favor of a contribution-based mechanism that targets builders, ChainCatcher reports citing an announcement on X. The treasury will broaden revenue through higher fee splits from Ronin marketplace transactions, net sequencer profits, and token income from Ronin-based applications and games, while governance will shift from validators to a token-weighted voting system where RON holders decide on treasury buybacks, investments, and DeFi activities. Around 90 million RON previously earmarked for passive staking will be redirected into treasury reserves, with about 5 million RON per year allocated to proof-of-delivery rewards based on metrics including TVL, gas consumption, user retention, and transaction volume.