Summary
Ronin, the Ethereum sidechain for blockchain games, will reduce RON token rewards for liquidity providers on its decentralized exchange (DEX), Katana. The company plans to cut liquidity pool token emissions in waves, reducing daily token rewards by approximately 50% each time. The move aims to address the over-incentivization of liquidity providers and achieve better equilibrium for token prices. The reduction will also free up more RON tokens for other initiatives to drive user growth. The market responded positively to the news, with the price of RON increasing after the announcement. Ronin has seen a surge in active users following the migration of the game Pixels to the network.
Key Points
1. Ronin, an Ethereum sidechain designed for blockchain games, will reduce RON token rewards paid to liquidity providers on its Katana decentralized exchange (DEX) starting in March. This decision aims to address the over-incentivization of liquidity providers and achieve better equilibrium for token prices.
2. Sky Mavis, the company behind Ronin and its flagship game Axie Infinity, plans to cut liquidity pool token emissions in multiple waves, reducing daily token rewards by approximately 50% each time. This reduction will decrease the number of tokens added to the circulating supply on a daily basis.
3. The network has experienced a significant increase in active users, particularly after the migration of the blockchain-based farming game Pixels from Polygon in October. This growth, coupled with the recent listing of RON on major crypto exchange Binance, has contributed to the positive market reaction and price appreciation of the token.