Votes in favor of putting Ronin treasury funds into Katana pools accounted for 95.2% of the RON cast by the morning of November 12. Holders have until November 24 to meet the participation threshold.
Ronin’s proposal to put about $177,000 of treasury assets into Katana pools was 11.6 million RON short of quorum on November 12. At 08:05 UTC, the governance portal showed roughly 8 million RON in favor, 401,700 against and 6.41 abstaining. Of the 159 addresses on the voter list, one accounted for nearly half the voting power cast. It cast 4.2 million RON in favor.
The vote needs 20 million RON to count
RGP-1 is the first treasury decision put directly to RON holders. Validators handled earlier treasury decisions. Holders discussed the proposal publicly and endorsed it for a vote. Ronin’s ecosystem team reviewed it before the ballot opened on November 10. Holders had asked for more time, so Ronin extended the voting period from seven days to 14.
Voting closes on November 24 at 10:00 UTC. Holders must cast at least 20 million RON in total. The proposal also needs at least 66% of the combined yes and no votes. Abstentions count toward quorum alone. Each RON held at block 63,418,007 carried one vote. Moving tokens after that snapshot does not change a wallet’s voting power.
Ronin’s November 10 announcement opening the RGP-1 vote
The post loads from X when you open it.
What the treasury would deposit on Katana
Phuc Thai of Sky Mavis valued the treasury at roughly $900,000 on November 10. He proposes committing about a fifth of those assets to two liquidity pools on Katana V2. Traders swap against the pools, and the people or institutions supplying the tokens earn a share of trading fees. The treasury would keep the tokens representing its pool positions. Its AXS and SLP holdings would be untouched.
| Pool | Treasury assets | Estimated position value |
|---|---|---|
| RON/USDC | 40,054.4 USDC and 884,000 RON | $80,100 |
| RON/rETH | About 19.67 rETH and 1.07 million RON | $97,200 |
The first draft paired RON with WETH. In its account of the discussion, Ronin credited community member TheGuillotine with suggesting rETH instead. RON/WETH already had more liquidity than any other pool on Ronin. Adding the treasury’s funds would barely change the price a trader got on a large swap. Rocket Pool’s rETH represents staked ETH and accrues staking rewards. As eGamers.io reported on November 11, the USDC side of the plan stayed the same.
If the proposal passes, at least two of the treasury’s three signers would authorize sending 22.34 WETH to Ethereum over Chainlink’s CCIP bridge for conversion into rETH. The existing market on Ronin is too small for that trade. After network and bridge fees, the treasury must receive at least 99.5% of the WETH’s value. It expects about 19.01 rETH and would add the 0.66 rETH it already holds. Prices when the deposits are made will determine how much RON is needed.
The treasury would use its 1.67 million wrapped RON first. Holders would have to vote again before the treasury could commit more than 5 million RON, including later deposits. The treasury could add funds no more than once a quarter, using WETH, rETH or USDC it receives after the initial deposits.
How trading volume affects the treasury’s return
Thai estimated annual income of $8,400 in trading fees and $1,000 from staking at the previous 30 days’ volume. The RON/rETH pool has no trading history, so he used the fee yield on RON/WETH as a proxy. If nobody trades RON/rETH, estimated income from both positions falls to $6,600. The quieter seven-day period implies $6,700, while the 90-day average gives $13,000. These are estimates for positions the treasury has yet to open.
For a trader swapping $10,000 on RON/USDC, Thai estimates that the deposit would cut the trade’s price impact from 5.4% to 4.5%. On RON/rETH, he puts the impact of a $1,000 swap at about 2%, rising to 17.1% for a $10,000 order.
If RON halves or doubles against its paired token, the pool position would be worth 5.7% less than holding the original assets, before fees. Thai ran the numbers for two past periods. Even after fees and staking rewards, the pools would have earned $7,300 less than holding over six months. Over three months they would have come out $2,300 ahead.
In its November 4, 2021 Katana tutorial, Axie Infinity explains how users add both assets to a pool in the chapter starting at 1:38.
If holders approve the plan, the treasury has 14 days after voting closes to make both deposits. It must publish the conversion amounts and transaction records within seven days of execution, then report quarterly. The treasury could not transfer, stake or borrow against its pool tokens. Holders could vote to exit. If a pool were compromised or rETH lost its peg, the team could pause the positions and would have to report the incident within 72 hours. The pause expires after 14 days unless holders extend it. A vote against would leave the assets in the treasury. A revised proposal could return after 30 days.
