Ronin Ethereum Transitions to Layer 2 Network

Ronin Ethereum, the gaming-focused blockchain behind Axie Infinity, is undergoing a significant change with its transition to a Layer 2 network. Scheduled to take place on May 12, the hard fork will enable Ronin to plug into the larger Ethereum ecosystem, improving security and reducing token inflation.

During the migration window, which is expected to last around 10 hours, all transactions – including transfers, swaps, NFT trades, and smart contract interactions – will be paused. This period of downtime is necessary for the successful completion of the hard fork, which will see Ronin integrate with Ethereum's OP Stack rollup infrastructure.

The move from an independent sidechain to a Layer 2 network addresses concerns surrounding security that arose following a major hack in March 2022. The $625 million exploit highlighted the structural risks associated with small validator sets and led to the development of more robust infrastructure, such as Chainlink's cross-chain interoperability protocol.

The new Proof of Distribution model will significantly reduce token inflation from over 20% to below 1%, while marketplace fees are set to rise from 0.5% to 1.25%. The redirected RON tokens amounting to 90 million will be allocated to the Ronin treasury, contributing to its financial sustainability.

Ronin's integration with EigenDA will also enable data availability for transactions, storing relevant information off-chain while maintaining verifiability and accessibility on Ethereum. This collaboration brings Ronin into the OP Stack ecosystem alongside other chains like Celo and Fraxtal.