#Why is Ronin migrating to Ethereum?
Ronin, the blockchain designed for gaming and developed by Sky Mavis to support titles such as Axie Infinity, is set to transition to Ethereum on May 12. This significant change will mark the end of its four-year period as an independent sidechain and will introduce extensive upgrades to its ecosystem.
This migration is expected to dramatically reduce RON inflation from over 20% to less than 1%. Moreover, it aims to boost the treasury inflows significantly. An exciting feature is the introduction of Proof of Distribution, a system that will allocate rewards to builders based on their tangible contributions to the network.
Proof of Distribution will evaluate contributors based on measurable factors like gas expenditure, user acquisition, and trading activity. Additionally, treasury inflows will benefit from a combination of staking allocations, sequencer revenue, and elevated marketplace fees. This transition is designed to create a more efficient, secure, and incentive-driven environment for both builders and users.
However, users should note that the migration will require approximately 10 hours of downtime during which no on-chain activities will be possible. Node operators are advised to upgrade prior to the scheduled hard fork at block number 55577490.
#What led to Ronin's independence?
Ronin originated in late 2020 when Sky Mavis, the Vietnamese gaming studio responsible for Axie Infinity, recognized that Ethereum’s early layer 2 solutions were still evolving. As gas fees on the Ethereum mainnet became unsustainable for the game's growth, Sky Mavis launched the Ronin mainnet in February 2021 to create a high-throughput and cost-effective platform suitable for attracting millions of players.
This independent venture significantly contributed to Axie's remarkable growth until early 2022. However, the independence came with vulnerabilities. In March 2022, the Ronin bridge suffered a security breach orchestrated by the Lazarus Group, reportedly linked to North Korea, which resulted in the loss of approximately $625 million in assets—an event that stands as one of the most substantial hacks in crypto history.
The Ethereum landscape has undergone considerable transformations over the past six years. Current layer 2 solutions are more robust and reliable, data availability costs have significantly decreased, and the OP Stack now handles millions of transactions daily across various chains. The migration signifies not only a return to Ethereum but a step forward into a more resilient and interconnected future.