Ronin has published its first community governance proposal. Called RGP-1, it lets RON token holders decide whether treasury assets should be used to add liquidity on Katana, the decentralized exchange that runs on the network.
RGP-1 is a first test of how part of the treasury could back Ronin’s token economy and generate income for the ecosystem. If it succeeds, game projects built on Ronin could follow with proposals of their own.
What RGP-1 would do
Under the plan, roughly $185,000 would be deployed. That’s 17% of the treasury, which is valued at an estimated $1.1 million. About $92,000 in WETH (22 WETH) and USDC (39,500 USDC) already held by the treasury would be matched with the same value in RON and split between Katana’s RON/WETH and RON/USDC pools. The liquidity positions would remain owned by the treasury.
A liquidity pool holds the assets that traders swap against. Providers put in two tokens and receive pool tokens showing their share of the reserves. Katana V2 collects trading fees inside the pool, and each provider earns a portion based on how much of the pool’s total value they hold.
Traders on Katana benefit because bigger reserves mean large trades shift the price less.
Fees and risk
Using recent trading volumes, Ronin projects that the positions could earn an extra $14,100 in trading fees across 12 months. Its model puts the likely range between $6,100 and $16,000.
Liquidity providers also face impermanent loss. If the two tokens change in price relative to each other, trades rebalance the pool’s mix of assets, and the position may end up worth less than simply holding the original tokens. Depending on trading volume and price swings, fees can offset that shortfall, though collecting fees doesn’t guarantee the position comes out ahead.
Ronin’s own six-month backtest makes the point. Across that window, the positions would have collected $6,200 in fees and suffered $8,000 in impermanent loss, leaving a net loss of $1,800. Performance would be reported every quarter.
How the vote works
Voting is one RON, one vote, and a proposal passes only with a 66% supermajority. Before anything reaches a ballot, it has to clear community discussion and a review by the ecosystem team. Holders get a voice, and the process still keeps institutional oversight in place. Because votes track token ownership, bigger holders carry more weight. Ronin says the screening step and the supermajority threshold are there to reduce the risk of governance capture.
- The vote doesn’t have a date yet.
- Voting will run for seven days.
- Quorum is 20 million RON, with abstentions counted.
- If the proposal passes, the treasury has 14 days after the vote closes to make the deposits.
What comes next
Should the proposal pass and hit its targets, other game projects on Ronin will be able to put forward similar proposals that pair their own token reserves with RON from the treasury. Ronin is also looking at adding liquidity for AXS and SLP tokens.