There’s a quiet hum in the crypto space, a subtle shift that tells you something significant is happening. It’s not a loud bang, but more like a major highway deciding to reroute. This time, the focus is on Ronin, the specialized Ethereum sidechain that powered the gaming giant Axie Infinity. Ronin is making a big move, transforming itself into a full-fledged Ethereum Layer 2.
- Ronin, the Ethereum sidechain powering Axie Infinity, is transitioning into a full Ethereum Layer 2, with plans for a relaunch in the first half of 2026. This move is driven by Ethereum’s improved transaction speeds and costs, and a desire to leverage its security.
- The shift aims to make Ronin’s tokenomics more effective by utilizing Ethereum’s security, while also introducing a new Proof of Distribution model to reward active developers over passive validators.
- Despite a past $600 million exploit, Ronin’s move to an L2 status signifies a commitment to enhanced security and scalability, positioning it as a “gamification engine” for web3 applications.
This isn’t a common sight. We’ve seen other networks, like Celo, make similar transitions. But it remains a relatively rare event. Ronin’s team, Sky Mavis, plans for this relaunch to happen in the first half of 2026. It marks a clear pivot for a chain that started out of necessity.
“Four years ago, we built Ronin because Axie Infinity needed a faster, more efficient network,” Ronin shared in a blog post. They noted that Ethereum was still early in its scaling journey. That need drove their original design.
But times change. “Ethereum is BACK,” Ronin declared. Transaction costs and speeds are better than they used to be. This new era of growth has Ronin ready to rise, they say. It’s a bold statement, reflecting a renewed confidence in the Ethereum ecosystem.
A Strategic Shift
This decision by Sky Mavis comes at an interesting time. Ethereum, the second-largest blockchain, spent much of 2025 in a narrative tussle with Solana. Solana had captured users and attention. This led to some community frustration with the Ethereum Foundation, which seemed to prioritize Layer 2s rather than scaling the main chain directly.
However, Ethereum has seen a strong rally in recent weeks. Wall Street has embraced the network. It hosts most stablecoins and real-world assets. It is also the longest-operating smart contract chain, known for its security and lack of downtime. The success of Ethereum ETFs and the rise of Ethereum treasury companies have also played a part.
Ronin’s announcement highlights these Ethereum accomplishments. They point to a newly “lean, nimble, and responsive” Ethereum Foundation. They also mention “Wall Street’s attention and capital.” Technological improvements have made running a Layer 2 “increasingly affordable,” they added.
Beyond Ethereum’s resurgence, there’s also rising competition. Companies are looking to launch their own specialized blockchains. Think of Circle’s Arc, Tether’s Stable, or Stripe’s Tempo. These are all vying for a piece of the blockchain pie. Ronin’s move could be a way to solidify its position in a crowded field.
The Layer 2 Advantage
The core of Ronin’s strategic shift lies in leveraging Ethereum’s security. “Leveraging Ethereum’s security will allow us to make Ronin’s tokenomics more effective,” the Sky Mavis team wrote. This is a key benefit of becoming a Layer 2 (L2). An L2 processes transactions off the main chain, but it still relies on the main chain for security and data availability.
It is not yet clear which specific technical stack Ronin will use for its Layer 2. Options like Arbitrum or Optimism are common choices. Ronin has previously used Polygon’s software development kit. This allowed game makers to build their own blockchains on the Ronin chain. The choice of tech stack will be an important detail to watch.
The RON token will remain the native gas token for the network. The team notes that Layer 2s pay “a small fee” for Ethereum data availability. This fee is used to verify rollup transactions on the base layer. This cost, they explain, “is much less expensive than compensating validators with $RON in security rewards.” This suggests a more efficient cost structure for the network.
The new chain aims to be 12 times faster. It will also feature a new Proof of Distribution tokenomics model. This model is designed to reward developers. It will reallocate RON token staking rewards. Instead of going to “passive validators,” they will go to “active builders.” The rewards will be based on the size of their total stake and a “Builder Score.”
This Builder Score uses onchain metrics. These include gas fees generated, treasury revenue, and total value locked (TVL). It also considers off-chain “mindshare.” This new model aims to incentivize development and growth directly on the Ronin network. It’s a clear signal that Ronin wants to foster a vibrant ecosystem of creators.
Learning from the Past
Ronin has a significant history. Since its launch, it has seen 31 million wallet downloads. It has also generated over four billion in NFT trading volume. The network supports several other web3 games beyond Axie Infinity. Axie Infinity itself was one of the most popular games during the pandemic-era bull run. It showed the world the potential of play-to-earn gaming.
However, Ronin’s history also includes a major challenge. In March 2022, the network suffered a $600 million exploit. This hack was reportedly carried out by the North Korean state-sponsored Lazarus Group. It was one of the largest hacks ever seen in the crypto space. The attackers gained control over five of Ronin’s nine validators. This raised serious questions about the network’s decentralization at the time.
Ronin also experienced a much smaller attack in August 2024. These incidents highlight the critical importance of security in the blockchain world. The Lazarus hack, in particular, became a key part of the Department of Justice’s prosecution of Tornado Cash developer Roman Storm. He was tried on sanctions-related charges.
This past experience likely plays a big role in Ronin’s decision to become an L2. By leveraging Ethereum’s battle-tested security, Ronin aims to prevent future incidents. It’s a move that suggests a deeper commitment to protecting user assets and maintaining network integrity. The goal is to become the “gamification engine” for crypto. This means providing a secure and scalable foundation for a wide range of web3 games and applications.
The shift to an Ethereum Layer 2 could reshape Ronin’s future. It might just be the next chapter for a network that has already seen its share of highs and lows. What new games and experiences will emerge on this re-engineered chain? We’ll have to wait until 2026 to find out.