Ronin

Rewards

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/sky-mavis-slashes-rewards-for-dex-liquidity-providers" rel="noopener noreferrer nofollow">Sky Mavis Slashes Rewards for DEX Liquidity Providers</a><br></p>
<p style="text-align: justify"><a href="https://en.bitcoinhaber.net/revolutionizing-cosmos-proposal-to-slash-atom-inflation-to-zero" rel="noopener noreferrer nofollow">Blockchain</a> gaming firm Sky Mavis has unveiled a significant reduction in the incentives for liquidity providers on its Katana decentralized exchange. The phased pullback will see a 50% cut from March 1, followed by another halving in the next stage, culminating in a 75% decrease from current levels.</p>
<h2 id="strategic-cuts-to-balance-rewards">Strategic Cuts to Balance Rewards</h2>
<p style="text-align: justify">Sky Mavis, the developer behind the Ronin blockchain, initiated these cuts after observing a substantial rise in the average annual yield of its liquidity pools, which soared from 20% to 70% without a commensurate rise in token staking. Despite the Ronin token’s 59% price surge since the year’s start, the team believes that the increased reward value has failed to deliver significant improvements in DEX liquidity provisioning.</p>
<p style="text-align: justify">The reduction in rewards is projected to save around $5.72 million in Ronin token expenses for the first quarter of next year. The Ronin team has highlighted the importance of this decision, pointing to the fixed cap of 1 billion tokens and emphasizing that decreased emissions will result in lower inflation of the circulating supply.</p>
<h2 id="implications-for-the-ronin-ecosystem">Implications for the Ronin Ecosystem</h2>
<p style="text-align: justify">Currently, the Katana DEX accounts for over 99% of Ronin’s $200 million total value locked. Despite the RON token reclaiming its high valuation from the previous year, the total value locked has not yet returned to the pre-cyberattack $1 billion mark. However, the ecosystem has shown signs of recovery following the recent Binance listing.</p>
<p style="text-align: justify">The strategy of reducing token rewards has historically been associated with a positive impact on token prices, as seen in other blockchain ecosystems. This move by Sky Mavis may well lead to a similar uptrend in the value of its native token.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/sky-mavis-slashes-rewards-for-dex-liquidity-providers" rel="noopener noreferrer nofollow">Sky Mavis Slashes Rewards for DEX Liquidity Providers</a></h5>

Sky Mavis Slashes Rewards for DEX Liquidity Providers

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