Ronin Treasury to start buying back millions of RON starting next week
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
The Ronin Treasury plans to buy back over $4 million worth of RON tokens from the open market starting September 29, swapping its Ether (ETH) and USDC holdings for RON over a month. This move aims to reduce the circulating supply of RON and increase the treasury’s holdings. Ronin Network intends this to support its evolution as a full-fledged layer-2 network on Ethereum and foster ecosystem growth.
Why it matters
The buyback could reduce RON’s circulating supply, potentially pushing up its price and aligning the interests of tokenholders, builders, and the Ronin ecosystem. The source suggests this is part of Ronin’s broader strategy to re-establish itself within the Ethereum ecosystem as Web3 gaming interest increases. The article does not elaborate further on wider market or policy implications.
Key context
Ronin Network was originally created as a faster, cheaper Ethereum sidechain for NFT gaming but suffered a major $600 million hack in March 2022, severely impacting its total value locked (TVL). Following this, Ronin announced a return as an Ethereum layer-2 network in August 2024. The treasury’s funds were collected from fees on Ronin’s DEX, marketplace, and name service over several years.
Key numbers and entities
Ronin Treasury plans to buy back $4 million worth of RON, representing about 1.3% of its 693 million circulating tokens. Current market cap for RON is $355.7 million. The treasury holds approximately $5.5 million in assets, including 896 wrapped ETH valued at $3.9 million and 652,000 USDC. RON has declined over 88% from its March 2024 peak of $4.45 and recently spiked 11% to $0.54 after the buyback announcement.
What remains unclear
The source does not specify the detailed mechanisms of the buyback process or how the treasury’s increased RON holdings will be used strategically. It also does not clarify the long-term plans for price support or specific growth initiatives linked to the buyback. The potential reaction from wider market participants and regulatory perspectives are not addressed.