Ronin, the Ethereum side chain built for the play-to-earn Web3 game Axie Infinity, is undergoing a transition to a Layer-2 network. As part of the go, the task or idea aims to establish its views, as it is listed as the ‘gamification motor’ for crypto.
“Four years ago, we built Ronin because Axie Infinity needed a faster, more efficient network. Ethereum was still early in its scaling roadmap. Necessity was the mother of our invention.” Ronin wrote in a blog. “However, things are different now. Ethereum is BACK. Transaction costs and speeds are better than ever. We’re early to a new era of growth, and Ronin is ready to rise.” Although some networks that started as independent layer 1 have transitioned into layer 2s, the move remains uncommon. Ronin is expected to launch in the first half of 2026.
Ronin taps Ethereum amid rising blockchain competition
The move is built on a cross-current of trends, including fresh hopes over Ethereum. The second-largest blockchain has been in a narrative war with Solana, the rival chain they stifled for years, but now succeeded in taking mindshare and users away from Ethereum, fuelling internet hatred against the Ethereum Foundation for focusing on L2s over scaling the mainchain.
Nevertheless, Ethereum has found strength in the past weeks due to Wall Street’s welcoming to Ethereum (largely because it is home to a majority of stablecoins and real-world assets), which operates the longest-running and most secure smart contract chain that has never experienced any downtime, coupled with the success of Ethereum ETFs and the rise of Ethereum Treasury companies.
In its announcement, Ronin mentioned Ethereum’s recent achievements, noting a now “lean, nimble, and responsive” Ethereum Foundation, growing “Wall Street attention and investment,” and technological advances that make operating a Layer 2 “more cost-effective than ever.” The Sky Mavis team, which developed Ronin and Axie Infinity, said leveraging Ethereum’s security will make Ronin’s tokenomics more effective.
Whether Ronin will adopt a tech stack similar to Arbitrum or Optimism for its Layer 2 remains unclear. Previously, the blockchain used Polygon’s software development kit to enable game developers to create their own blockchains on the Ronin network. Meanwhile, RON, which is currently down about 2.5% on the day, will serve as the native gas token. The team highlighted that Layer 2s incur “a small fee” for Ethereum data availability, which is used to verify rollup transactions on the base layer and “is much less expensive than compensating validators with $RON in security rewards.”
Tokenomics and security revamped after high-profile attacks
The announcement also mentioned that the new chain will be 12 times faster and introduced a Proof of Distribution tokenomics model to reward developers. Under their system, RON staking rewards will shift from “passive validators” to “active builders,” determined by the size of their stake and a “Builder Score.” This score incorporates on-chain metrics such as gas fees generated.
Since its launch, Ronin has seen more than 31 million wallet downloads and over $4 billion in NFT trading volumes. Alongside Axie Infinity, one of the most well-known games during the pandemic-era bull run, the network also features many other web3 games. In March 2022, its customer Ronin lost $600 million in a hack organized by the same group of North Korean state-sponsored Lazarus, the biggest hack ever.
The successful attackers controlled five of Ronin’s nine validators, sparking debate surrounding the network’s centralization. Ronin was hit again in August 2024 in a smaller attack. Lazarus’ hack played a central role in the Department of Justice’s prosecution of Tornado Cash developer Roman Storm, who faced trial on sanctions-related charges.
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