Key Points
- RON Buybacks have begun! The Ronin Treasury has started swapping its ~890 ETH and ~650K USDC for RON.
- How the buyback works: The buyback will run for about a month, using a time-weighted average price (TWAP) to minimize market disruption.
- What this means for RON: At current prices, the Ronin Treasury will acquire about 9,000,000 in RON representing ~1.3% of the circulating supply.
Last week, the ecosystem team announced plans to swap ~$4.5M in Ronin Treasury assets to RON. Today, the buybacks have begun! Here’s what’s happening:
How the buyback works
Over the next month or so, the Ronin Treasury will purchase about 9,000,000 in RON from the open market using its ~890 ETH and ~650K USDC in revenue accumulated over the past few years. The purchase will use a time-weighted average price (TWAP) strategy to ensure minimal market volatility.
“Want to watch the buyback in real-time? Follow along using the Ronin Explorer here.”
What’s a Time-Weighted Average Price (TWAP)?
A TWAP splits large orders into smaller parts. That means the Ronin Treasury will buy small amounts of RON every day, emptying its warchest of ETH and USDC while filling it back up with RON. Think of it like this: The Ronin Treasury will buy ~$100 USD in RON per minute instead of buying ~9,000,000 RON all at once.
Why use a TWAP?
Large buys face a few challenges. They can cause huge price spikes that lead to high slippage fees and purchase prices. TWAPS help fix this by keeping orders predictable while spreading them out over time as the market price fluctuates.
What this means for RON
By the end of October, the Ronin Treasury will hold about 1.3% of RON’s circulating supply. This is the first arrow in our quiver and strengthens our movement as Ronin’s Homecoming to Ethereum approaches. Crypto’s Nintendo is just warming up.
