Ronin, the gaming-centric blockchain once known for the industry’s notorious $625 million exploit, is set to transition from a sidechain to an Ethereum layer 2 on May 12. This move aims to enhance security while maintaining high throughput.
The migration was announced by Ronin in April and will involve a hard fork at block 55,577,490, leading to approximately 10 hours of downtime for users. According to onchain data, the migration is scheduled to commence around 15:16 UTC on Tuesday.
“Four years ago, we introduced Ronin to provide a faster and more efficient network for Axie Infinity,” Ronin stated when announcing the migration. “It successfully onboarded millions of gamers to the crypto world, and Pixels showcased the potential for similar success. The time has come to reconnect with the main Ethereum network.”
Despite facing the largest DeFi bridge exploit in history while operating as an independent sidechain in mid-2022, Ronin’s transition to a layer 2 protocol offers enhanced security features due to its closer integration with the Ethereum blockchain.
The native token of the network, $RON, is currently trading at around 11 cents with a market cap of approximately $89.5 million. The migration announcement sparked a 30% price increase over the last 30 days as investors anticipate changes in the network’s supply dynamics.
During the planned downtime, all network transactions, including transfers, swaps, and smart contract interactions, will be temporarily paused. Ronin advised users to complete all necessary transactions and game actions on the network before the downtime begins to avoid any inconvenience.
As part of the downtime period, a “Proof of Distribution” model will be introduced to reward active network contributors based on their contributions. This shift is expected to significantly reduce token inflation from over 20% to below 1%, which is seen as a positive development for $RON.
By transitioning to the OP Stack, Ronin aims to leverage Ethereum’s robust security features while maintaining high throughput. The migration involves redirecting 90 million $RON tokens earmarked for staking rewards into the Ronin Treasury and increasing marketplace fees from 0.5% to 1.25%.
Ronin emphasized that its return to Ethereum marks a strategic move to revamp its economics, fortify its bridge infrastructure, and ensure its long-term viability. The upgrade is designed to enhance scalability and reduce costs through the implementation of EigenDA for improved data availability.
