Ronin, the blockchain backbone of the Axie Infinity gaming ecosystem, is preparing for a major upgrade on May 12. The network will undergo a hard fork to transform itself into an Ethereum Layer 2 solution using OP Stack technology. This transition will begin at block height 55,577,490 and come with a planned network shutdown expected to last around 10 hours.
Planned network outage and user alerts
During the transition, all transactions, swaps, smart contract interactions, and in-game activities on the Ronin network will be paused. Users are advised to complete any pending operations before the maintenance begins. The Ronin team has proactively warned the community to minimize disruptions and potential issues.
During the upcoming Ronin Layer 2 migration, the network will experience a planned outage of approximately 10 hours. All network activity, including transfers, swaps, and smart contract transactions, will be suspended throughout this period.
Ronin was originally launched in 2021 as a sidechain to handle heavy transaction loads for Axie Infinity, which the Ethereum network struggled to support at the time. In the four years since, Ethereum has evolved significantly, witnessing lower fees and more mature layer 2 scaling solutions.
Security and new integrations
Security concerns were a major factor in Ronin’s decision to migrate to Layer 2. In March 2022, a notorious exploit linked to North Korea’s Lazarus Group compromised five network validators, leading to a loss of $625 million on the bridge. This incident remains the largest cross-chain bridge hack in decentralized finance history. Another, albeit smaller, attack took place in August 2024.
By adopting OP Stack, Ronin will begin leveraging Ethereum mainnet security directly, aiming to prevent ‘bridge’ exploits from recurring. Additionally, with the integration of EigenDA for data availability, the network will lower scaling costs while maintaining high transaction throughput.
Major tokenomics overhaul
The move to Layer 2 will also bring fundamental changes to the tokenomics of Ronin’s native token, RON. The annual inflation rate will be slashed from over 20% to below 1%. Roughly 90 million RON tokens previously reserved for validator rewards will instead be allocated to a network treasury. Marketplace transaction fees will be reduced from 1.25% to 0.5%.
Staking rewards are getting a major revamp as well. The traditional model, which automatically rewarded all passive validators, will be replaced by a new ‘Proof of Distribution’ system. Only stakeholders actively contributing to the network will receive rewards, fostering stronger incentives for developers and projects.
According to CryptAppsy data, RON is currently trading near $0.11, with a market capitalization of $89.5 million. The price has surged about 30% in the past 30 days. Investors anticipate further gains as the supply tightens and the rewards scheme shifts with the Layer 2 migration.
Ronin’s Layer 2 transition marks another example of independent chains like Celo integrating into Ethereum’s security framework. This trend is expanding, yet Layer 1 competitors such as Solana continue to vie for market share without slowing pace in the short term.
