Ronin, the gaming-centric blockchain once synonymous with the industry’s infamous $625 million exploit, is officially shedding its sidechain skin on May 12 to become a layer 2 of Ethereum to improve security while maintaining throughput.
Ronin, which announced the migration in April, will execute a hard fork at block 55,577,490, a process that will result in approximately 10 hours of downtime for users, the network announced Monday.
“Four years ago, we launched Ronin because Axie Infinity needed a faster, more efficient network,” Ronin said when announcing the migration. “It worked. Axie Infinity brought millions of players to crypto, and Pixels proved it was possible to do it again.” Now is the time to “reconnect with the mothership.”
While operating as an independent sidechain in mid-May 2022, Ronin underwent what is still today the largest DeFI bridge exploit in history. Layer 2 protocols benefit from closer ties to the underlying blockchain than sidechains, providing benefits that include greater security.
The network’s native token, RON, is currently trading at around 11 cents with a market cap of around $89.5 million, according to CoinDesk data. Although the token remains significantly below its 2024 high, the migration has sparked a rally, with prices surging 30% over the past 30 days as investors contemplate a change in the network’s supply dynamics.
“During this downtime window, all network transactions [including transfers, swaps, and smart contract interactions] will be paused,” Ronin said, adding that all games using its network will also be affected. “To avoid any inconvenience, please complete all necessary on-chain gaming transactions/actions on the Ronin network before the downtime begins.”
During the shutdown period, a “proof of distribution” model will be introduced to reward builders based on active contribution to the network rather than passive staking, Ronin said. The team noted that “this is fundamentally bullish for RON as it significantly reduces token inflation from over 20% to less than 1%.”
The company also said the transition to OP Stack would allow it to inherit Ethereum’s robust security while maintaining high throughput. The move redirects 90 million RON tokens previously reserved for staking rewards to the Ronin Treasury, while more than doubling market fees from 0.5% to 1.25%.
Ronin said his narrative is dominated by his crucial move back to Ethereum, a strategic move to reset its economy, secure its bridging infrastructure and secure its future in an upgrade intended to improve scalability and reduce costs through the use of EigenDA for data availability.
