In Brief:
- Major Transition: Ronin network set to integrate with Ethereum as a Layer 2 solution on May 12, aiming to curb RON inflation dramatically from over 20% to under 1%.
- Innovative Reward System: Introduction of Proof of Distribution to allocate RON based on builders’ on-chain activities, evaluating metrics like NFT volume and gas spend.
- Planned Outage: Migration involves around 10 hours of downtime, affecting key on-chain operations such as token swaps and NFT trades.
Detailed Migration Plan
On May 12, the Ronin network will undergo a significant transition by migrating to Ethereum as a Layer 2 network. The migration, scheduled at block #55577490, marks a pivotal moment for Ronin. One of the most notable changes will be the substantial reduction in RON token inflation. Currently, the inflation rate stands at over 20%, but post-migration, it is projected to fall to less than 1%. This reduction will decrease the volume of reward emissions, potentially stabilizing the token’s value.
Introducing Proof of Distribution
In conjunction with the network migration, Ronin will roll out a new automated reward system known as Proof of Distribution. This system will evaluate builders’ contributions based on their on-chain activity with a monthly ranking determined by Builder Scores. These scores will be assessed based on various metrics, including NFT volume and gas spend, with quarterly reviews by Sky Mavis for possible adjustments. Builders interested in this new system are encouraged to register prior to the migration.
Financial Adjustments and Downtime
The migration also brings financial adjustments aimed at enhancing the Ronin Treasury. Following the migration, the share of fees from the Ronin Marketplace will increase from 0.5% to 1.25%, adding to the treasury’s revenue streams alongside net sequencer profits. Additionally, any RON that remains staked as of May 12 will be automatically unstaked after the migration concludes.
Ronin has announced there will be a planned downtime lasting approximately 10 hours from 8 a.m. to 6 p.m. PT on the day of the migration. During this window, functionalities such as token swaps, NFT trades, and unstaking will be temporarily unavailable. Moreover, RPC node operators on the Ronin Mainnet are required to upgrade to release 1.2.2 before the hardfork to maintain operational continuity.
The upcoming changes are eagerly anticipated by the community and the network builders, who are looking forward to the potential economic and governance benefits that these adjustments are poised to bring.