Sky Mavis, the developer behind the constantly expanding Ronin network, whose token was recently added on Binance, has announced an update to the Katana liquidity mining program for the first quarter of 2024. As part of this update, the company will reduce rewards in $RON tokens on its decentralized exchange (DEX) in two phases.

In the first phase, starting from March 1st, rewards for liquidity providers will be reduced by 50% due to the recent Binance listing. The native token of the Ronin blockchain network has now become more accessible and has greater liquidity, prompting the studio to make a series of changes to its reward program to reduce the "high level of inflationary rewards for Katana liquidity providers." The first set of adjustments will take effect from the first phase. According to current conditions, the existing Katana emission rate will result in the issuance of around 10.9 million $RON per quarter. The goal of the first phase is to reduce these emissions by 5.4 million tokens per quarter, or over 60 thousand $RON per day, which means a 50% reduction in rewards.

In the second phase, the adjusted rewards from the first phase will be further reduced by 50%, meaning that a 75% reduction in rewards can be expected from current emissions at some point. While the start date of the first phase is known, the date of the second phase has not yet been set. Sky Mavis will continue to monitor the program's structure, tracking liquidity provider activity and studying how liquidity changes in the blockchain. According to the official announcement, implementing this new update into the program will allow the studio to save almost 2 million tokens in the first quarter of this year, which they can then use for other Ronin-related campaigns aimed at increasing the user base.