Ronin opens RGP-1 vote on moving treasury funds into Katana V2 pools - eGamers.io
Ronin has opened a 14-day governance vote on RGP-1, which would allocate $177K of treasury funds into liquidity pools on Katana V2, including a new RON/rETH pool.
The Ronin governance portal is now accepting votes on RGP-1, a proposal that would place approximately $177K of treasury funds into liquidity pools on Katana V2. Voting will last 14 days, concluding on November 24 at 10:00 UTC (17:00 Vietnam time). This represents a significant shift as it's the first time RON holders will directly vote on treasury decisions, which were previously handled through validator governance.
Under the proposal, the Ronin Treasury Safe would deposit 40,054.4 USDC into the Katana V2 RON/USDC pool and convert 22.34 WETH into approximately 19.01 rETH (Rocket Pool's staked ETH) to create a new RON/rETH pool. The treasury will pair these deposits with roughly 1.96M RON from its existing holdings and retain the liquidity provider (LP) tokens.
Proposal Evolution
The original proposal intended to match treasury WETH with RON in the RON/WETH pool. However, community member TheGuillotine pointed out that RON/WETH is already the deepest pool on Ronin, meaning the treasury's contribution would have minimal impact. They suggested using staked ETH instead, leading to the updated version that creates Ronin's first real market for staked ETH.
RON/WETH is already the deepest pool on Ronin, meaning the treasury's WETH would make little difference there.
Expected Benefits and Risks
If passed, the proposal is projected to generate about $9.4K annually for the treasury, split between $8.4K from trading fees and $1.0K from rETH staking rewards. The RON/USDC pool would see reduced price impact, with a $10,000 swap currently shifting prices by 5.4%, dropping to 4.5% after the change. The new RON/rETH pool would initially have zero liquidity.
The proposal outlines several risks, including impermanent loss should RON's value fluctuate significantly relative to its paired tokens. New dependencies are introduced through rETH's reliance on Rocket Pool and the Chainlink CCIP bridge connecting Ronin and Ethereum. The RON/rETH pool launches with no trading history, potentially falling short of fee income estimates.
Governance Process
For RGP-1 to pass, Yes votes must constitute at least 66% of combined Yes and No votes, and a 20M RON quorum must be reached. Holders connect their Ronin Wallet to the governance portal to vote, with each RON counting as one vote based on holdings at the snapshot block. The proposal follows a new standard path: discussion on Discord, confirmation by RON holders, ecosystem review, and portal publication.
Voting periods have been extended from 7 to 14 days in response to holder requests for more time. If passed, the Treasury Safe will convert WETH and complete deposits within 14 days of the vote closing. Against votes would prevent the deposits, though a revised proposal could return after a 30-day cooldown.
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