Sky Mavis, the developer of the ever-growing Ronin Network whose token was recently listed on Binance, has announced a 2024 Q1 update for their Katana Liquidity Mining program, in which they will reduce $RON rewards on the DEX in 2 phases.

Phase 1

As a result of the latest Binance listing, the native token of the Ronin blockchain is now more accessible than ever and has a lot more liquidity, prompting the studio to make a couple of changes to their rewards program in order to reduce “the high level of inflationary rewards to Katana Liquidity providers.”

The first set of adjustments will kick in with the first phase that is set to start on March 1st. As things currently stand, the existing Katana emission rate would lead to around 10.9 million $RON being emitted quarter. Phase 1 aims to lower these emissions by 5.4 million tokens per quarter, or more than 60k $RON per day, meaning that rewards are being reduced by 50%.

Phase 2

In the second phase, the adjusted rewards from the first phase will be halved by 50%, meaning that from the current emissions, we can expect to see 75% lower rewards at some point. While the start date for phase 1 is known, phase 2 does not have a date set in stone for the time being. Sky Mavis will keep monitoring the structure of the program while keeping track of activity from liquidity providers alongside examining how on-chain liquidity is impacted. According to the official post, introducing this new update to the program will save almost 2 million tokens in the first quarter of this year, which the studio will be able to then use for other Ronin-related campaigns that are focused on increasing the userbase.