The Ronin Treasury plans to repurchase over $4 million in RON tokens from the open market to help decrease the circulating supply, which may lead to higher prices.
The blockchain focused on gaming, Ronin Network, announced on Sunday its intention to start converting all its Ether (ETH) and USDC (USDC) holdings into RON over the span of a month, initiating on Sept. 29.
This buyback initiative will enhance the amount of Ronin (RON) in the treasury while reducing the tokens available in circulation. Presently, there are 693 million out of a total of 1 billion tokens circulating, which places Ronin’s market capitalization at $355.7 million.
The buyback strategy aims to “further align our ecosystem, tokenholders, and builders as Ronin develops into a full-fledged layer-2,” the team stated. They also mentioned that it will foster additional growth “as the global interest in Web3 gaming returns.”
The Ronin Treasury is currently valued at around $5.5 million, with its largest asset being 896 Ronin Wrapped Ether (WETH), estimated to be worth about $3.9 million.
Less ETH, More RON
Beyond Ether, the treasury holds 652,000 USDC (which will also be liquidated), alongside 1.2 million RON and wrapped RON, in addition to several memecoins.
These funds were accumulated through fees from the Katana DEX, Ronin Market, and Ronin Name Service over several years, as stated.
The buyback represents roughly 1.3% of RON’s existing circulating supply, and there are no plans to sell any treasury assets.
Ronin Returns to Ethereum
Ronin revealed its return in August, announcing it is reestablishing itself as a layer-2 network on Ethereum.
Related: Axie Infinity creator Ronin network making a comeback to Ethereum as L2
The chain originally diverged from the Ethereum mainnet in 2021 to achieve faster network speeds and reduced transaction fees for its non-fungible token (NFT) Web3 game, Axie Infinity.
The team has acknowledged the resurgence of Ethereum and aspires to participate in that expansion. “Ronin’s Homecoming to Ethereum is approaching. Wall Street is entering our industry,” it remarked.
The network faced a downturn after its Ronin Bridge sidechain was hacked for $600 million in March 2022, marking the largest crypto hack of that time.
Total value locked dropped from approximately $1.2 billion in early 2022 to current levels around $56 million, according to DeFillama.
RON Price Reacts
Following the announcement, RON prices saw an immediate 11% increase, reaching $0.54 on Sunday; however, it had retraced to $0.51 at the time of writing.
Currently, RON is down over 88% from its all-time high of $4.45 in March 2024 and has traded flat for the past six months.
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