Ronin Overhauls Tokenomics, Ends Passive RON Staking

Passive Staking Ends: Ronin will cancel passive staking rewards for its RON token by late March, potentially creating short-term selling pressure.
Contribution-Based Model: The network is shifting to a new model that distributes rewards based on a user&#x27;s active contributions to the ecosystem.
Governance Overhaul: Governance will transition to a token-weighted voting system, giving RON holders direct influence over the network&#x27;s future.

Ronin to End Passive Staking Rewards in Late March

The Ronin network announced on March 4 that it will overhaul its economic model, with the most significant change being the cancellation of passive staking rewards for its native RON token. The reform is scheduled to be implemented in late March, coinciding with the network's planned upgrade to an Ethereum Layer 2. This move eliminates a primary source of yield for passive holders and may trigger short-term selling pressure from investors who were staking purely for the rewards.

Network Pivots to Contribution-Based Rewards

In place of passive rewards, Ronin is introducing a "distribute by contribution" mechanism designed to create a more sustainable economic loop. This new system aims to incentivize and reward users and builders who actively participate and add value to the ecosystem. The reform also includes a transition to a token-weighted governance model, empowering RON holders with voting rights proportional to their holdings. This shift is intended to improve long-term decentralization and attract participants focused on the network's growth rather than passive yield extraction.