CDS Crypto News RON Rewards Halving: Game Network Ron’s Rewards Will Decrease in 2024
Crypto News

RON Rewards Halving: Game Network Ron’s Rewards Will Decrease in 2024

RON rewards halving was highlighted in an announcement made by Ronin.

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Ron Rewards Halving: Game Network Ron'S Rewards Will Decrease In 2024

Crypto NewsAnnouncing its decision to lower RON token payouts given to liquidity providers on its Katana DEX beginning in March, Ronin announced on Thursday.

RON Rewards Halving: Game Network Ron’s Rewards Will Decrease in 2024

The developer of Axie Infinity, the network’s main game, Sky Mavis, said that it would reduce the daily token awards by around 50% as it reduces liquidity pool token emissions in phases. By doing this, fewer tokens will be added every day to the supply that is in circulation.

According to the network, in recent months there has been a significant increase in the average annual percentage rate (APR) for supplying liquidity, which was approximately 20% to 70%. However, the growth in incentives has not been commensurate with the number of tokens pooled.

This means the increase in reward value did not drive meaningful outcomes in DEX liquidity provision, and may have gone past the optimal level of incentives,

the announcement

The First Phase will Start on March 1

Rewards will therefore be phased down. Emissions will be reduced by more than 60,000 RON per day, or about 5.4 million RON, in the first phase, which is scheduled to begin on March 1. That represents a reduction of more than $174,000 per day, or $15.6 million per quarter at the current price.

In 2024, there will be more phases that decrease incentives. The network claims that the decrease is to stop the “over-incentivization” of liquidity providers and improve the equilibrium for token pricing. Additionally, it will free up more RON tokens for other projects that might promote user expansion.

Ron Rewards Halving: Game Network Ron'S Rewards Will Decrease In 2024
Sources:decrypt
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