Ronin Reduces RON Emissions to 5 Million Annually for Builders
Written with artificial intelligence.
Ronin has significantly cut its annual RON emissions from 45 million to 5 million since migrating to Ethereum, representing an 89% reduction. The entire amount will now be allocated to builders through a new reward system, Proof of Distribution, eliminating staking rewards for RON holders.
Ronin's Emission Reduction
Ronin has announced a drastic reduction in its annual RON emissions, dropping from 45 million to 5 million. This marks the lowest emission rate in the network's history, with the new figure representing an 89% decrease. The full 5 million RON will be dedicated to rewarding builders using the Proof of Distribution system, which was implemented during its migration to Ethereum.
Changes to Rewards and Staking
Under the new model, validators and stakers will no longer receive rewards. Instead, builders will receive approximately 416,000 RON each month based on a builder score that assesses various metrics, including gas spend and user activity. According to Ronin, this change results in an annual inflation rate of about 1.2%.
Proof of Distribution Explained
The Proof of Distribution program allows registered projects to submit their smart contracts and earn rewards based on their activity levels. Monthly payouts will be determined by data collected over the previous four weeks. Builders interested in participating must connect their Ronin Wallet on the Proof of Distribution site and submit their contract addresses.
Treasury Adjustments
In addition to changes in emissions, Ronin has restructured its treasury by moving 90 million RON previously reserved for staking into the treasury. Profits from the net sequencer, calculated as total gas revenue minus expenses, will also contribute to the treasury. Furthermore, Ronin Marketplace fees have increased from 0.5% to 1.25%, with the additional revenue directed to the treasury.
Background on Migration
Ronin transitioned to an Ethereum layer 2 solution on May 12, 2026, moving away from its previous sovereign layer 1 setup. The migration, described as "the largest state migration in history," was facilitated by Conduit, and RON remains the gas token for transactions on the network. Ronin emphasizes that the new distribution model encourages builders by stating, "The more you build, the more you earn."