Ronin, the gaming-centric blockchain once notorious for the industry’s infamous $625 million exploit, is set to shed its sidechain skin on May 12 and transition into an Ethereum layer 2 to enhance security while maintaining throughput.
The migration, which was announced in April, will involve a hard fork at block 55,577,490, resulting in approximately 10 hours of downtime for users, according to the network’s update on X. The migration process is expected to commence around 15:16 UTC on Tuesday, as indicated by onchain data.
Reflecting on the decision to migrate, Ronin stated, “Four years ago, we launched Ronin to provide Axie Infinity with a faster and more efficient network. It was successful in onboarding millions of gamers to crypto, and Pixels demonstrated the potential for a similar achievement.” The time has now come to reconnect with the Ethereum network.
Despite operating as an independent sidechain in mid-2022, Ronin experienced the largest DeFi bridge exploit in history. By transitioning to a layer 2 protocol, the network aims to establish stronger ties with the underlying blockchain, thereby enhancing security measures.
Currently, the network’s native token, $RON, is trading at around 11 cents with a market capitalization of approximately $89.5 million, based on CoinDesk data. Following the migration announcement, the token witnessed a 30% price surge over the last 30 days as investors anticipate changes in the network’s supply dynamics.
As the downtime approaches, Ronin emphasized the temporary suspension of all network transactions, including transfers, swaps, and smart contract interactions. Games utilizing the network will also be impacted. Users are advised to complete any necessary transactions or on-chain game actions on the Ronin Network before the downtime commences to avoid disruptions.
Amid the downtime, Ronin plans to introduce a “Proof of Distribution” model to reward builders based on active network contribution rather than passive staking. This shift is expected to reduce token inflation from over 20% to below 1%, a development deemed bullish for $RON.
The transition to the OP Stack will enable Ronin to leverage Ethereum’s robust security features while maintaining high throughput. Notably, 90 million $RON tokens designated for staking rewards will be redirected to the Ronin Treasury, while marketplace fees will increase from 0.5% to 1.25%.
Ronin emphasized that its narrative is centered around its strategic return to Ethereum, a move aimed at resetting its economics, fortifying its bridge infrastructure, and securing its future through scalability improvements and cost reductions facilitated by EigenDA for data availability.