The Ronin Treasury aims to repurchase over $4 million worth of RON tokens from the open market to decrease the circulating supply of the token, potentially driving prices upward.
The Ronin Network announced on Sunday that it will commence swapping all of its Ether (ETH) and USDC (USDC) reserves for RON over the next month, starting September 29.
These buybacks will bolster the amount of Ronin (RON) within the treasury while reducing the supply of Ronin tokens in circulation. Currently, there are 693 million tokens circulating out of a total supply of 1 billion, giving Ronin a market capitalization of $355.7 million.
The buyback initiative will “further align our ecosystem, tokenholders, and builders as Ronin transitions into a fully operational layer-2,” the team stated, emphasizing that it will promote growth “as the global interest in Web3 gaming increases.”
The Ronin Treasury currently holds approximately $5.5 million, with its largest asset being 896 Ronin Wrapped Ether (WETH), valued around $3.9 million.
Less ETH, more RON
Besides Ether, the treasury comprises 652,000 USDC (also set to be liquidated), 1.2 million RON and wrapped RON, along with various memecoins.
These funds were accrued through fees generated from the Katana DEX, Ronin Market, and Ronin Name Service over the years, as indicated.
The buyback represents roughly 1.3% of RON’s current circulating supply, with no plans for the treasury to sell any.
Ronin returns to Ethereum
In August, Ronin revealed its plans to return as a layer-2 network on Ethereum.
Related: Axie Infinity creator Ronin network coming back to Ethereum as L2
The chain was initially launched off the Ethereum mainnet in 2021 to achieve better network speeds and lower transaction costs for its NFT Web3 game, Axie Infinity.
The team has now acknowledged the growth of Ethereum and desires to participate in that momentum. “Ronin’s Homecoming to Ethereum is nearing. Wall Street is entering our industry,” it noted.
Since the Ronin Bridge sidechain was hacked for $600 million in March 2022— the largest crypto hack in history at that time — the network has seen a decline.
Total value locked plummeted from about $1.2 billion in early 2022 to current figures around $56 million, according to DefiLlama.
RON price reacts
In response to the announcement, RON prices surged by 11% to hit $0.54 on Sunday; however, it had receded to $0.51 by the time of writing.
Currently, RON is down over 88% from its all-time high of $4.45 in March 2024 and has remained stable for the past six months.
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