Ronin has put forward its first community governance proposal. RGP-1 asks RON token holders to vote on whether treasury assets should go toward extra liquidity on Katana, the network’s decentralized exchange.
The proposal is the first step in deciding how some of the treasury’s funds could support Ronin's token economy and earn income for the ecosystem. If it works, game projects on Ronin could later submit similar proposals of their own.
What RGP-1 would do
The plan would deploy about $185,000, which is 17% of the treasury’s estimated $1.1 million value. Around $92,000 of existing WETH (22 WETH) and USDC (39,500 USDC) would be paired with an equal value of RON across Katana’s RON/WETH and RON/USDC pools. The treasury would keep ownership of the liquidity positions.
Liquidity pools hold the assets users trade against. Providers deposit two tokens and get pool tokens back that represent their share of the reserves. On Katana V2, trading fees build up inside the pool, and each provider gets a cut in proportion to their share of the pool’s total value.
For anyone trading on Katana, deeper reserves mean larger trades move the price less.
Fees and risk
Ronin estimates the positions could bring in $14,100 in extra trading fees over 12 months, based on recent volumes. Its modeled range runs from $6,100 to $16,000.
Providing liquidity also brings exposure to impermanent loss. When the relative prices of the two tokens move, trading shifts the mix of assets in the pool, and the position can end up worth less than holding the original tokens would have been. Fee income can make up the gap, depending on trading activity and price movements. Earning fees doesn’t by itself mean the position is profitable.
Ronin’s own six-month historical backtest shows the risk. Over that period the positions would have earned $6,200 in fees against $8,000 of impermanent loss, a net loss of $1,800. Quarterly reports would track performance.
How the vote works
Each RON held counts as one vote, and approval needs a 66% supermajority. Proposals also have to go through community discussion and a review by the ecosystem team before they reach a ballot, so holders get a say while the process keeps institutional oversight. Since voting power follows token ownership, larger holders have more influence over outcomes. Ronin says the screening process and the supermajority requirement are meant to limit the risk of governance capture.
- No date has been set for the vote yet.
- The ballot will stay open for seven days.
- A quorum of 20 million RON, including abstentions, is required.
- If it passes, the treasury must make the deposits within 14 days of the vote closing.
What comes next
If the proposal passes and meets its goals, other game projects on Ronin will be able to submit similar proposals that pair their own token reserves with treasury RON. Ronin is also considering adding more liquidity for AXS and SLP tokens.
