Quick Breakdown
- The Ronin Treasury is set to begin a buyback of its native token, RON, starting September 29. They will use their holdings of Ether (ETH) and USDC, worth over $4.5 million, to buy RON from the open market over a month.
- The buyback is expected to reduce the circulating supply of RON by approximately 1.3%. This is intended to create deflationary pressure on the token and increase its value. The treasury has no plans to sell the tokens, signalling a one-way investment.
- This move is part of a broader plan for the Ronin Network, which is the blockchain behind the game Axie Infinity.
Buyback details and objectives
The Ronin Treasury’s buyback will start next week and is part of a broader financial strategy to improve the scarcity and utility of RON. By repurchasing millions of tokens from the open market, Ronin hopes to restore confidence among investors while demonstrating its commitment to sustainable tokenomics. This is particularly significant amid continued efforts to rebuild trust following the platform’s high-profile $620 million hack in March 2022.
The treasury acquiring RON directly on exchanges indicates a proactive approach to managing supply-demand dynamics and signals positive forward momentum for the project. Market observers have noted that reducing circulating supply could positively impact RON’s price stability in the volatile crypto market.
Strategic implications for Ronin ecosystem
This buyback aligns with Ronin’s long-term vision to solidify its infrastructure as a leading Layer 2 solution tailored for NFTs and gaming applications. The initiative could also pave the way for future ecosystem enhancements and incentivize community engagement. Ronin’s leadership stressed that the buyback is one component of a broader roadmap designed to increase transparency, foster developer participation, and enhance user experience across its network.
As the decentralized finance space evolves, token buybacks have become a favoured mechanism for projects seeking to bolster token value and reward holders. Ronin’s buyback initiative places it among other prominent crypto networks using such strategies to maintain robust market health and investor confidence.
Meanwhile, BitMine Immersion Technologies has become the world’s largest Ethereum treasury after reporting combined crypto and cash holdings of nearly $10.8 billion. This substantial reserve includes over 2.15 million ETH tokens, placing the company second only to Strategy Inc. in overall crypto holdings, and highlights Ethereum’s increasing significance in institutional investment. Chairman Thomas Lee underscores this strategy, describing Ethereum as a central component in the evolving digital asset landscape and a major long-term macro trade.
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