Ronin has opened its first governance proposal, RGP-1. It asks RON holders to vote on putting part of the Ronin Treasury into liquidity pools on Katana. If the vote passes, treasury WETH and USDC will be paired with RON the treasury already holds and deposited into the RON/WETH and RON/USDC pools. The aim is deeper RON markets, with more trading fees going back to the treasury.
The proposal uses about 17% of the treasury. According to the proposal, it fixes a pain point raised by users, and RON holders decide whether it goes ahead.
What the treasury would deposit
At market prices the Ronin Treasury holds about $1.1M. Roughly $92K of that is WETH and USDC, which RGP-1 would deploy. If approved, the Ronin Treasury Safe deposits:
- 21.97 WETH into the Katana V2 RON/WETH pool
- 39,469.2 USDC into the Katana V2 RON/USDC pool
Each deposit is matched with RON from the treasury, about 1.62M RON at current prices. Together they add about $185K of liquidity to RON markets. Every token comes from the treasury’s existing balances, so the treasury makes no market buys and no market sells.
The LP tokens stay in the Ronin Treasury Safe and remain treasury assets. They won’t be transferred, staked in farms or used as collateral.
What changes for players and traders
Anyone swapping RON gets deeper markets. With more liquidity, a trade moves the price less, which matters most on larger swaps such as a $10,000 trade.
Every swap through these pools pays a 0.3% fee. The treasury already earns 0.05% of every trade, and RGP-1 adds the 0.25% liquidity provider share on its own positions. Based on the last 30 days of trading volume, the proposal estimates $14.1K a year, about $1.2K a month. Its modelled range runs from $6.1K to $16.0K a year depending on volume. These are estimates from recent activity, with no guarantee.
How the backtest came out
The proposal replays RGP-1 against the last three and six months of real Katana trading. Over three months, the positions would have earned $2.7K in fees against $0.5K of impermanent loss, finishing $2.2K ahead of simply holding the tokens.
The six-month result is weaker. RON fell about 45% against both tokens over that period, and $6.2K in fees covered about three-quarters of the $8.0K impermanent loss, leaving the positions $1.8K behind holding. The proposal says that in a flat or recovering market, most of the fee income is profit.
Impermanent loss comes with every liquidity pool. A pool keeps its two tokens in balance, so if RON halves or doubles against WETH or USDC, the position is worth about 5.7% less than holding. If the price ratio returns, the value comes back and the fees stay. Since past results won’t match the future exactly, RGP-1 includes quarterly reporting, and RON holders can exit through a governance vote.
The rules attached
- Fixed amounts: the WETH and USDC amounts are set, and matching RON follows each pool’s price at execution.
- RON cap: matching RON is capped at 5M RON in total. If the cap is reached, both deposits scale down in proportion.
- Slippage protection: minimum amounts are set at 99.5% of the amounts submitted.
- Top-ups: at most once a quarter, using new WETH or USDC the treasury receives, within the same 5M RON cap. Anything beyond that needs a new vote.
- Exit: by a passed governance proposal, or an emergency pause to protect funds if a pool is ever compromised, followed by a post-mortem within 72 hours.
- Scope: two Katana V2 positions. Katana V3 or new pairs such as RON/AXS need their own proposals.
RGP-1 is executed by the Ronin Treasury Safe at 0x22cefc91e9b7c0f3890ebf9527ea89053490694e. Within 7 days of execution, a public report will list transaction hashes, amounts deposited, LP tokens received, the treasury’s share of each pool and pool prices at deposit. The positions will then appear on the treasury dashboard. Each quarter after that, RON holders will see fee income against the $14.1K base case and the result against holding.
A template for game projects
RGP-1 only covers WETH and USDC. The treasury also holds AXS, SLP and a wide range of ecosystem tokens, and the proposal already runs the same analysis on each one.
Ronin pitches RGP-1 as a template for teams building on the chain that want treasury RON paired with their own token. A proposal needs the amount, the Katana pool, expected fees, a six-month backtest and an exit plan. RON holders then vote on whether to back the game.
How the vote works
RGP-1 is the first full run of Ronin Governance, which has six phases:
- Phase 1, forum discussion: opens in the public-temp-check forum on Discord. 20 votes move it to Phase 2.
- Phase 2, RON holder confirmation: 30 upvotes from RON holders, with the proposal open for at least 7 days.
- Phase 3, portal publishing: after a publishing check by the Ronin Ecosystem team, the proposal goes live on the governance portal.
- Phase 4, voting snapshot: RON balances are snapshotted at the publishing block, followed by 3 days for review.
- Phase 5, RON-weighted vote: 7 days, with 1 RON equal to 1 vote.
- Phase 6, execution: on-chain within 14 days of the vote closing.
A For result means the Treasury Safe makes both deposits within 14 days of the vote closing. An Against result means the treasury keeps its WETH and USDC as they are, and a revised proposal can return after a 30-day cooldown. Abstain votes count toward quorum without backing either side.
To pass, For votes must reach at least 66% of For plus Against, with a quorum of 20M RON. For, Against and Abstain votes all count toward that quorum.
