RGP-1, the first governance proposal on Ronin, is now open. RON holders are being asked whether part of the Ronin Treasury should go into liquidity pools on Katana. A passing vote would pair treasury WETH and USDC with RON the treasury already has, then deposit the pairs into the RON/WETH and RON/USDC pools. Ronin wants deeper RON markets, and more trading fees flowing back to the treasury.
About 17% of the treasury is involved. The proposal says it addresses a pain point users have raised, and RON holders get the final say on whether it happens.
The treasury’s planned deposits
Valued at market prices, the Ronin Treasury holds about $1.1M. RGP-1 would deploy the roughly $92K of that sitting in WETH and USDC. With approval, 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
RON from the treasury is matched against each deposit, about 1.62M RON at current prices. Combined, the two positions add about $185K of liquidity to RON markets. All of the tokens come out of balances the treasury already holds, so it neither buys nor sells anything on the market.
The resulting LP tokens remain in the Ronin Treasury Safe as treasury assets. They won’t be moved elsewhere, staked in farms or put up as collateral.
The effect on players and traders
RON swaps get deeper markets. More liquidity means a trade shifts the price less, and that difference shows up most on bigger swaps, a $10,000 trade for example.
Each swap through these pools carries a 0.3% fee. The treasury already collects 0.05% of every trade. Under RGP-1 it would also take the 0.25% liquidity provider share on its own positions. Using the last 30 days of trading volume, the proposal puts the figure at $14.1K a year, or about $1.2K a month, with a modelled range of $6.1K to $16.0K a year depending on volume. Those numbers are estimates drawn from recent activity and aren’t guaranteed.
Backtest results
The proposal tests RGP-1 against real Katana trading over the last three and six months. In the three-month window, the positions would have collected $2.7K in fees and taken $0.5K of impermanent loss, ending $2.2K ahead of just holding the tokens.
Six months looks worse. Over that stretch RON dropped about 45% against both tokens. Fees of $6.2K offset about three-quarters of the $8.0K impermanent loss, so the positions ended $1.8K behind holding. According to the proposal, most fee income is profit when the market is flat or recovering.
Every liquidity pool carries impermanent loss. Because a pool holds its two tokens in balance, a position is worth about 5.7% less than holding if RON halves or doubles against WETH or USDC. That value returns if the price ratio does, and the fees are kept either way. Past results won’t line up exactly with what comes next, so RGP-1 builds in quarterly reporting and lets RON holders exit through a governance vote.
Conditions in the proposal
- Fixed amounts: the WETH and USDC amounts are locked in, and the matching RON is set by each pool’s price at execution.
- RON cap: total matching RON can’t exceed 5M RON. Hitting the cap scales both deposits down proportionally.
- Slippage protection: minimum amounts sit at 99.5% of the amounts submitted.
- Top-ups: no more than once a quarter, using fresh WETH or USDC the treasury receives, and still inside the 5M RON cap. Going further requires a new vote.
- Exit: through a passed governance proposal, or an emergency pause to protect funds should a pool be compromised, with a post-mortem within 72 hours.
- Scope: two Katana V2 positions. Katana V3 or new pairs like RON/AXS would each need a separate proposal.
The Ronin Treasury Safe at 0x22cefc91e9b7c0f3890ebf9527ea89053490694e carries out RGP-1. A public report follows within 7 days of execution, listing transaction hashes, amounts deposited, LP tokens received, the treasury’s share of each pool and pool prices at the time of deposit. After that, the positions show up on the treasury dashboard. Every quarter, RON holders get fee income measured against the $14.1K base case, plus the result compared with holding.
A model for game teams
Only WETH and USDC fall under RGP-1. The treasury also has AXS, SLP and many other ecosystem tokens, and the proposal has already run the same analysis on each of them.
Ronin presents RGP-1 as a template for teams on the chain that want treasury RON paired with their own token. Such a proposal has to include the amount, the Katana pool, expected fees, a six-month backtest and an exit plan. RON holders then vote on whether to support the game.
Voting process
RGP-1 is the first complete pass through Ronin Governance, which runs in six phases:
- Phase 1, forum discussion: starts in the public-temp-check forum on Discord. 20 votes advance 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: once the Ronin Ecosystem team completes a publishing check, the proposal goes live on the governance portal.
- Phase 4, voting snapshot: RON balances are captured at the publishing block, then 3 days are given for review.
- Phase 5, RON-weighted vote: runs 7 days, with 1 RON equal to 1 vote.
- Phase 6, execution: on-chain within 14 days of the vote closing.
If For wins, the Treasury Safe makes both deposits within 14 days of the vote closing. If Against wins, the treasury holds on to its WETH and USDC unchanged, and a revised proposal can come back after a 30-day cooldown. Abstain votes count toward quorum but support neither side.
Passing requires For votes to make up at least 66% of For plus Against, with a quorum of 20M RON. For, Against and Abstain votes all count toward that quorum.