Ronin Network Completes Migration on Ethereum as Layer 2

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Rajpalsinh Parmar
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Ronin Network Completes Migration on Ethereum as Layer 2
  • The popular gaming blockchain, Ronin Network, announced the completion of its migration to Ethereum as a Layer 2 solution powered by Optimism’s OP Stack.
  • This migration will help it to boost the network’s security and avoid security incidents like in the past.
  • RON token inflation will drop from 45 million to 5 million per year with the new economic models to reward game developers.

On May 13, Ronin Network announced the completion of the transition of its network into Layer-2 on the Ethereum mainnet, built on the Optimism OP Stack after being an Ethereum sidechain for so many years.

Why Ronin Migrate Now and Choose the OP Stack

Ronin Network has been a popular network for major blockchain-based games like Axie Infinity, along with many other gaming applications. The return of the network on Ethereum will connect Ronin directly with Ethereum’s main ecosystem for the settlement and availability of data after winding down operations as a side chain.

In 2021, Sky Mavis created Ronin as a sidechain of Ethereum with the purpose of fixing the high fees and low speeds on the mainnet of the Ethereum blockchain network for a popular game called Axie Infinity. It was a play-to-earn game, which quickly became popular in regions like Southeast Asia and the Philippines.

After starting with only one game, Ronin Network has expanded its operations with the onboarding of other blockchain games. Due to this, thousands of players joined the network through various farming simulation games like Pixels, Cambria, Angry Dynomites, and other games.

Last year, Ronin revealed its plan to change its future direction with new changes. For this, the community has discussed various proposals to implement new changes. In one proposal, the community of network validators has proposed that the network should use the Optimism OP stack. It is the same layer-2 used by chains like Base and others like Celo and Fraxtal. The migration took place through a hard fork at block number 55,577,490 on May 12 after completing the process of around 10 hours under downtime. 

During the migration process, all users’ funds, non-fungible tokens (NFTs), market listings, and game data were moved in one of the biggest migration processes in blockchain history. On the safe side, users do not need to take any action during the migration.

Benefits of Ronin Network’s Migration as a Layer 2

The major benefits of this migration process are that it will provide strong security to the network, as the network will use Ethereum as a source chain for security, data availability through EigenDA, and finality instead of relying on a small group of validators.

The migration will also cut down inflation as RON token emissions will drop significantly from approximately 45 million RON per year to just 5 million, which is around 1% annual inflation. Apart from this, around 90 million staked RON tokens have been moved to the treasury. 

In order to generate revenue on the network, the network will charge marketplace fees of up to 1.25% and revenue from the network sequencer. It will use a proof of distribution model that rewards builders based on chain activity, such as users, transaction volume, and growth. 

The network has also joined the OP Stack Superchain community. This integration will help it to increase cross-chain interoperability and gain more liquidity. It will also help to access Ethereum’s vast user base and its decentralized finance tools.

This migration is a major development for blockchain-based gamers as the Ronin network will now run smoothly.

After the bizarre hack incident in 2022, the Ronin network has taken the required measures to recover from the incident. The massive $625 million security breach on the Ronin Bridge in 2022 has damaged the network’s reputation.

Also Read: AAVE and Kelp DAO Complete Major Steps in rsETH Recovery

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