Ronin is moving towards decentralizing decisions and governance, and the first step was precisely Ronin's first governance proposal, called RGP-1, which is already available.

This will be the first time that RON holders will decide how to use Ronin Blockchain treasury. The amounts, as we will see below, are not in the millions as is usually the case with network announcements, but they already indicate the paths they intend to follow in the future. Come and learn more details about the first proposal, its impacts on the Ronin ecosystem, and much more!

I'll be much appreaciated if you Votes, Reblogs or give any Tips. Thanks and have good reading! 🍀

Ronin Holders Decide About Ronin Treasury!

The first governance proposal from the Ronin Network is called RGP-1 and proposes allocating WETH and USDC treasury to generate returns. The amount is around 22 WETH and almost 40,000 USDC, which will be paired with RON in liquidity pools on the Katana platform - Ronin's DeFi network. According to the official post, a total of 185,000 will be added to liquidity coming directly from the treasury.

I have no idea how the treasury was being managed previously, but as the message "Putting the Treasury to Work" says, I assumed the treasury was idle, and in that scenario the value could end up being eroded by token inflation and lose the opportunity to earn something on the LPs, something the proposal mentions. So, letting them generate some return and provide liquidity to the Ronin ecosystem doesn't seem like a bad idea...

There are some points to consider, such as the fact that LP tokens will remain in the Treasury and others that guarantee a certain level of security. For those wondering what the impacts of this proposal would be, the answer is related to why they add liquidity, which would be to allow for larger volumes of value movement within the platform. The example given is that a swap of 10k RON with USDC, instead of moving the price by 4.9%, would move it by 4.1%, and the fees would revert to the Treasury.

It's worth remembering that Ronin was its own network, which I believe gave even more value to the token, but due to a decision by those responsible for the network, they thought it best to take a step back and return to Ethereum, now as a Layer 2. It's not so bad, because Ronin indirectly started on Ethereum.

This is a very relevant topic for the long term for those interested in the Ronin Network, or who play any of its available games, but the Ronin Network post on X has few views. For those interested, there's a step-by-step guide in the link to X's post and a complete article by the Ronin team on their blog. Currently, the token is trading at $0.054, close to its ATL of 3 months ago, which might explain why it's not generating as much interest.

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