Ronin, the Ethereum sidechain built specifically for the play-to-earn web3 game Axie Infinity, is transitioning to Layer 2. 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, such as Celo—which started as an independent Layer 1—have transitioned into Layer 2s, such moves remain uncommon. Ronin’s relaunch is slated for the first half of 2026.
Ronin taps Ethereum’s strength amid rising blockchain competition
The move is built on a cross-current of trends, including fresh enthusiasm over Ethereum. The second-largest blockchain has been mired 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.
This is also happening at a time when competition for launching custom blockchains (Circle Arc, Tether Stable, Stripe Tempo) is heightening.
Nonetheless, ETH has found strength during the past weeks, primarily via Wall Street’s welcoming to Ethereum (it is still 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 highlighted Ethereum’s recent achievements, citing 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.
Ronin revamps tokenomics and security after high-profile hacks
RON, 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.”
The announcement also revealed that the new chain will be 12 times faster and introduce a Proof of Distribution tokenomics model aimed at rewarding developers. Under this system, RON staking rewards will shift from “passive validators” to “active builders,” determined by the size of their total stake and a “Builder Score.” This score incorporates on-chain metrics such as gas fees generated
Since launching, Ronin has seen 31 million wallet downloads and over four billion dollars in NFT trading volume. 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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