Ronin Treasury plans to buy back over $4 million worth of RON tokens from the open market to reduce the circulating supply of the token, which may drive up the price.
The blockchain focused on gaming, Ronin Network, announced on Sunday that it will gradually convert all its Ethereum (ETH) and USDC assets into RON over the course of a month. The buyback will start on September 29.
The buyback will increase the RON reserves in the treasury and reduce the number of Ronin tokens in circulation. Currently, the circulating supply is 693 million tokens, with a total supply of 1 billion tokens, and Ronin's market cap is $355.7 million.
The team stated that this buyback plan will "further align our ecosystem, token holders, and developers as Ronin grows into a mature layer two network," adding that it will also drive more growth "as the world returns to the Web3 gaming space."
Currently, the Ronin treasury is valued at approximately $5.5 million, with the largest holding being 896 wrapped Ethereum (WETH), valued at about $3.9 million.
In addition to Ethereum, the treasury also holds 652,000 USDC (which will also be sold), 1.2 million RON and wrapped RON, as well as several memecoins.
These funds come from years of accumulated fees from Katana DEX, Ronin Market, and Ronin Name Service.
It is reported that this buyback accounts for about 1.3% of the current circulating supply of RON. Currently, there are no plans for the treasury to sell.
Ronin announced its return in August, stating that it would relaunch as a layer two network on Ethereum.
The chain was originally split from the Ethereum mainnet in 2021, aiming to enhance network speed and reduce transaction costs for its NFT Web3 game Axie Infinity.
The team noted that they have been observing the developments on Ethereum and wish to actively participate. "Ronin's return to Ethereum is imminent, and Wall Street is entering our industry," the team stated.
Since the Ronin Bridge sidechain suffered a $600 million hack in March 2022 (the largest cryptocurrency hack incident at the time), the network's performance has declined.
According to DeFillama data, the total value locked (TVL) has dropped from about $1.2 billion at the beginning of 2022 to approximately $56 million currently.
In response to the announcement, the RON price surged 11% on Sunday, reaching $0.54; however, it has since fallen back to $0.51 as of the time of writing.
Currently, RON has dropped over 88% from its all-time high of $4.45 set in March 2024, with a stable trend over the past six months.
In response to the announcement, the RON price surged 11% on Sunday, reaching $0.54; however, it has since fallen back to $0.51 as of the time of writing.
Currently, RON has dropped over 88% from its all-time high of $4.45 set in March 2024, with a stable trend over the past six months.
Related: Hong Kong officially "bans" retail trading of USDT and USDC, ending the OTC era.
Original article: “Ronin Treasury to Start Buying Back Millions of RON Next Week”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
