The Ronin Treasury has announced an ambitious plan to purchase over $4 million worth of RON tokens from the open market, a move aimed at tightening the circulating supply of the asset. This strategic buyback is set to commence on September 29 and is expected to positively impact the token’s value.
In a statement released on Sunday, the Ronin Network—a blockchain platform designed for gaming—confirmed that it will begin converting its holdings of Ether (ETH) and USD Coin (USDC) into RON tokens over the next month. This initiative is cataloged as a key strategy in their efforts to bolster the Ronin ecosystem while addressing the market dynamics of their token.
Currently, there are 693 million RON tokens in circulation out of a total supply of 1 billion, which places Ronin’s market capitalization at approximately $355.7 million. The buyback is projected to increase the treasury’s RON reserves while simultaneously reducing the total number of RON tokens available in the market. According to the Ronin team, this initiative serves to align the interests of its ecosystem, token holders, and developers as Ronin advances towards its evolution as a full-fledged layer-2 solution.
The Ronin Treasury has an estimated worth of around $5.5 million, heavily influenced by its largest asset: 896 Wrapped Ether (WETH), valued at roughly $3.9 million. In addition to ETH, the treasury also includes 652,000 USDC, 1.2 million RON tokens (including wrapped versions), and various memecoins. The funding for this buyback was generated through transaction fees accrued from the Katana decentralized exchange (DEX), Ronin Market, and the Ronin Name Service over several years.
Notably, the planned buyback will represent approximately 1.3% of the current circulating supply of RON tokens, with the treasury indicating that it does not intend to sell any of its holdings post-buyback.
Ronin Network marked its return to the Ethereum ecosystem earlier this August, announcing new commitments as a layer-2 solution on the Ethereum blockchain. Originally created to enhance transaction speeds and reduce fees for its flagship non-fungible token (NFT) game, Axie Infinity, Ronin aims to reclaim its position and contribute positively to Ethereum’s growing landscape.
After being established as a sidechain in 2021, Ronin Network has faced its share of challenges, including a significant $600 million hack in March 2022, which was the largest in the industry at that time. Following this breach, the total value locked (TVL) in the network plummeted from around $1.2 billion to about $56 million today, according to data from DeFiLlama.
In reaction to the buyback announcement, RON token prices surged by 11% to hit $0.54, though they have since adjusted back to $0.51. Currently, RON is trading over 88% lower than its all-time high of $4.45 recorded in March 2024 and has seen little movement in the past six months.
In summary, the Ronin Treasury’s proactive buyback strategy is anticipated to strengthen its tokenomics and reinforce confidence among its investors and users as the platform embarks on an evolution back into the Ethereum ecosystem.
