Key Points
- Ronin is taking an important step forward with $RON’s tokenomics. This is to ensure clarity of $RON’s circulating supply calculations, aligning with the whitepaper unlock schedule. In the past, the circulating supply of $RON indicated on Coingecko and Coinmarketcap has not accurately reflected the amount of $RON that should be in circulation according to the Ronin whitepaper. By January 27th, these numbers will be in sync.
- What’s Happening: Currently, 23.8% of the total $RON token supply is unlocked and held in Genesis Multisigs and Smart Contracts. However, these tokens are not considered in circulation. In the coming days, there will be an operational movement of tokens between multi-signature wallets, after which all unlocked tokens will be considered for circulation. More details below.
- Looking Ahead: All current and future unlocked $RON tokens will be transferred from Genesis Multisigs into new multi-signature wallets and enter circulation. This ensures that the tokenomics in the Ronin whitepaper remains aligned with what users see when they search for $RON on Coingecko and Coinmarketcap.
- Sky Mavis Re-Lock: Sky Mavis has committed to re-locking ~75.0% of their unlocked token allocation to be vested quarterly over 2 years. This represents 8.0% of the total token supply. This reaffirms Sky Mavis’ deep conviction in an Open Ronin.
- This is an informational post: No changes were made to the existing tokenomics unlock schedule or maximum token supply. No user action is required. At full circulation, the maximum supply of $RON remains at 1 billion.
Operation Leviosa is underway, and Ronin is taking an important step forward with its tokenomics. The Sky Mavis team is excited about Ronin’s grand opening, and is fully committed to the vision of an open and transparent ecosystem. Let’s jump in:
Updated “Circulating Supply” Definition
A Brief History of Ronin Tokenomics
When the Ronin Network was created, several multi-signature wallets (“Genesis Multisigs”) were set up according to the Ronin whitepaper to hold token allocations for Rewards, Community Incentives, Sky Mavis allocation, and the Ecosystem Fund.
Tokens in these Genesis Multisigs together with smart contracts holding DEX LP Rewards and $RON Staking Rewards were excluded from circulating supply calculations. Only tokens moved out of these addresses were considered in circulation.
Over the years, $RON tokens have been unlocked according to the whitepaper schedule but were left in the Genesis Multisigs for reasons outlined in the April 2023 tokenomics explainer. This has led to a discrepancy between the current circulating supply of ~38.0% found on Coingecko and Coinmarketcap, and the expected circulating supply of 61.9% outlined in the whitepaper.
The Future of Ronin Tokenomics
To address the discrepancy in $RON circulating supply, two changes will be implemented:
- All current and future unlocked $RON tokens will be moved from Genesis Multisigs into new multi-signature wallets.
- Circulating supply calculations will now include unlocked tokens held in smart contracts designated for Katana Liquidity Mining Program (LP rewards) and $RON Staking rewards.
This means all unlocked $RON tokens will now be considered circulating.
This initiative will have the immediate effect of increasing $RON’s circulating supply by 23.8% to a total of 61.9%. Moving forward, $RON circulating supply figures on Coingecko and Coinmarketcap will align with those found in the Ronin whitepaper. No actions are required from the community.
To be clear, no tokens have been sold as part of this initiative, and this is simply a movement of tokens between wallets. There is also no change to the unlock schedule outlined in the Ronin whitepaper, and the maximum token supply of $RON remains the same at 1 billion tokens.
To achieve this, there will be an operational movement of tokens between multi-signature wallets outlined in further detail below. Rest assured, transparency will be prioritized to ensure that the community is able to track all wallets and token movements on chain.
Relocking Sky Mavis’ Tokens
As a more permissionless era approaches, Ronin creator Sky Mavis is more confident than ever in the network's long-term success. The opening of Ronin reaffirms Sky Mavis's commitment to delivering a world-class experience for its fast-growing community of users and developers.
To demonstrate conviction and support for Ronin, Sky Mavis will voluntarily relock ~75.0% of their unlocked allocation. This relocked portion accounts for 8.0% of the total token supply.
The relocked tokens will be subject to a new unlock schedule, vesting quarterly over the next 2 years. The remaining ~25.0% of unlocked Sky Mavis tokens will remain in a separate multi-signature wallet, with its addresses made public for full transparency. This is to reaffirm their conviction and belief that the best has yet to come. A permissionless Ronin is just the beginning!
Moving Unlocked Tokens into New Multi-signature Wallets
Following the updated definition of “Circulating Supply,” all unlocked tokens will be transferred from their Genesis Multisigs into five new multi-signature wallets. This operation will be carried out on January 27th, 2025. Here’s what that will look like:
Current State
In the current setup, four Genesis Multisigs hold locked and unlocked tokens for Rewards, Community Incentives, Sky Mavis’ Creator Allocation, and the Ecosystem Fund. LP Rewards and Staking Rewards are held in 2 separate smart contracts, awaiting distribution to eligible community members. Unlocked tokens in these 6 addresses do not count towards the circulating supply at the moment.
Future State
On January 27th, existing unlocked tokens from the four Genesis Multisigs will be moved into their respective new multi-signature wallets – as indicated in teal in the above diagram. These unlocked tokens account for ~22.6% of the total token supply. Together with ~1.2% of unlocked tokens held in the LP Rewards and Staking Rewards smart contracts, this results in 23.8% of tokens being added to the circulating supply calculation.
Moving forward, the Genesis Multisigs will only hold locked tokens, and any future tokens that unlock will promptly be moved to their respective multi-signature wallets.
Wallet Addresses
In full transparency, the addresses of the five new multi-signature wallets are below:
Unlocked Rewards: 0xd8353ab98c3ef06191ccd6b87b5e515d5ceb4e8e
Unlocked Community Incentives: 0x4deed8704b6e32ca46e6027591426e3c819bf98b
Unlocked Sky Mavis Allocation: 0xe1d6afa6d3eac7d1eafe0a5b5ceebb717b9360be
Locked Sky Mavis Allocation: 0x151153e56ea458a3873ca3dcf655d683da94fe9b
Unlocked Ecosystem Fund: 0x863dbc452b5676758ee6a67c9f7a505682b3a166
Final Thoughts
Ronin was launched in 2021 to spread digital property rights to internet users – starting with gamers. Today, the mission has grown and the protocol is sailing towards new horizons. This upcoming $RON tokenomics update is part of Operation Leviosa, and Sky Mavis remains committed to the community that built this movement from the trenches up. Let’s keep pushing!
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