<p>Axie Infinity co-founder Jihoz announced major economic changes to the Ronin network on March 3. Jihoz revealed Sky Mavis' plans to eliminate passive staking rewards and overhaul the network's tokenomics as it transitions to an Ethereum Layer-2.</p><p><a href="https://x.com/Jihoz_Axie/status/2028696130410946837">The changes</a> target what Jihoz described as broken "supply dynamics" for RON, the network's native token. With the changes going live, Ronin will retire its 180 million $RON staking pool and redirect 90 million RON tokens to the treasury, while allocating five million RON annually to a new Proof-of-Distribution (PoD) system.</p><p>The PoD system aims to reward developers based on measurable network activity.</p><h2>New Revenue Sources for the Treasury</h2><figure class="image image_resized" style="width:80.08%;"><img src="https://assets.funjible.games/ronin_proof_of_distribution_68d4684fe1.jpg" alt="Ronin proof of distribution screenshot" srcset="https://assets.funjible.games/ronin_proof_of_distribution_68d4684fe1.jpg 226w, https://assets.funjible.games/ronin_proof_of_distribution_68d4684fe1.jpg 500w" sizes="100vw"></figure><p>Ronin's economic changes will see Marketplace fees rebalanced from 0.5 percent to 1.25 percent, increasing the Treasury's total revenue. The treasury will also receive net sequencer profits from the L2 transition.</p><p>Sky Mavis will direct 100 percent of its own PoD rewards to the treasury for 2026, with annual reviews planned. These changes look to power up the treasury's ability to support RON's future network growth.</p><h2>Time to Govern</h2><div class="raw-html-embed">
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            Want to answer some questions that have popped up after yesterday's article:
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            1. Why hold RON if passive rewards are removed?
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            While passive staking rewards are being eliminated to fix inflation, RON is shifting from a high-emission token to a value-capture token.
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            Governance…
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        — Jihoz.ron (@Jihoz_Axie) <a href="https://twitter.com/Jihoz_Axie/status/2029108310272541022?ref_src=twsrc%5Etfw">March 4, 2026</a>
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</div><p>Control of the treasury is shifting from the current validator-only system to token-weighted voting. RON holders will get to vote on treasury spending, PoD reward adjustments, and decisions around token burns, or distributions.</p><p>Overall, Jihoz characterized the changes as "drastic and urgent," framing them as necessary to fix inflation issues that have hindered RON's performance in recent years.</p><p>The removal of passive emissions, combined with increased treasury inflows and new value capture mechanisms, is designed to create what Jihoz called a "deflationary trajectory" for the RON token.</p><h2>Upgrade Details</h2><p>If you hold your RON tokens in Coinbase, you may want to withdraw before the L2 upgrade. The leading exchange has indicated it may not support RON's L2 migration.</p><p>Ronin has reached out hoping for a different treatment, but there hasn't been any updates in this regard, at the time of writing. RON will continue to be used for gas fees on the network after the L2 transition.</p><h2>Ronin L2 Upgrade FAQs</h2><ul><li>When is Ronin transitioning to Layer-2?<ul><li>The transition is expected in late March 2026, though an exact date has not been confirmed.</li></ul></li></ul><p>&nbsp;</p><ul><li>What happens to existing RON stakers?<ul><li>Staking rewards will end, but staking contracts remain active. Users can unstake their RON at any time with no deadline or penalty.</li></ul></li></ul><p>&nbsp;</p><ul><li>How does Proof-of-Distribution work?<ul><li>PoD distributes 5 million RON annually to projects based on four metrics: TVL, gas usage, user retention (holders with 10+ RON), and trading volume.</li></ul></li></ul><p>&nbsp;</p><ul><li>Will Coinbase support the L2 migration?<ul><li>Coinbase has recommended users withdraw RON before the migration and has historically declined to support similar L2 transitions. Ronin is in discussions but has no confirmed support.</li></ul></li></ul><p>&nbsp;</p><ul><li>Does RON still have utility after staking ends?<ul><li>Yes. RON remains the gas token for network transactions and gains new utility through token-weighted governance over treasury operations.</li></ul></li></ul><p>Over the last year, Ronin solidified its place as leader in the GameFi ecosystem. Not only did <a href="https://funjible.games/news/sky-mavis-opens-ronin-to-all-with-permissionless-approach">Sky Mavis made Ronin more open to developers with a permissionless approach</a>, but it also introduced <a href="https://www.funjible.games/news/axie-infinity-introduces-keyless-wallets-with-ronin-waypoint">Keyless Wallets with Ronin Waypoint</a> to further simplify onboarding experiences in games.&nbsp;</p><div class="raw-html-embed">
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