The Ronin Treasury plans to buy back over $4 million in RON tokens from the open market to decrease the circulating supply and potentially boost prices.
On Sunday, the gaming-oriented blockchain Ronin Network announced it will initiate a swap of all its Ether (ETH) and USDC (USDC) holdings for RON over a month, starting Sept. 29.
This buyback will increase the Ronin (RON) in the treasury while reducing the total number circulating. Currently, 693 million out of a total 1 billion tokens are in circulation, giving Ronin a market cap of $355.7 million.
The buyback initiative aims to “better align our ecosystem, tokenholders, and builders as Ronin progresses into a complete layer-2,” the team stated, emphasizing that it will further promote growth “as the rest of the world returns to Web3 gaming.”
The Ronin Treasury is currently valued at around $5.5 million, with its largest asset being 896 Ronin Wrapped Ether (WETH) worth approximately $3.9 million.
Less ETH, more RON
The treasury also holds 652,000 USDC (which will likewise be sold), 1.2 million RON, wrapped RON, and various memecoins.
These funds were accumulated from fees generated by the Katana DEX, Ronin Market, and Ronin Name Service over several years, as per the announcement.
This buyback constitutes about 1.3% of RON’s active circulating supply, and the treasury has no intention to sell any tokens.
Ronin returns to Ethereum
In August, Ronin revealed its return as a layer-2 network on Ethereum.
Related: Axie Infinity creator Ronin network coming back to Ethereum as L2
This chain was initially created from the Ethereum mainnet in 2021 to achieve faster network speeds and lower transaction fees for its NFT Web3 game, Axie Infinity.
The team has acknowledged the growth of Ethereum and expressed a desire to be part of this expansion. “Ronin’s Homecoming to Ethereum is near. Wall Street is entering our sector,” they remarked.
The network has faced setbacks since the Ronin Bridge sidechain was compromised for $600 million in March 2022, which was the largest hack in the cryptocurrency sector at that time.
Overall value locked plummeted from around $1.2 billion in early 2022 to approximately $56 million, according to DeFillama.
RON price reacts
Following the announcement, RON prices surged by 11% to $0.54 on Sunday; however, they dropped back to $0.51 at the time of writing.
Currently, RON is down more than 88% from its all-time high of $4.45 in March 2024 and has remained stable over the past six months.
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