rewrite this title Ronin’s Ethereum L2 Shift on 12 May Could Slash RON Inflation 20x

Key Takeaways:

On May 12, Ronin will cross over to Ethereum Layer 2, which will cause the network to be offline for about a 10-hour period.During the upgrade, all on-chain activities will pause such as swaps, transfers, NFT trading, and even interactions with games.The migration should bring down the inflation level on RON from above 20% to below 1%, and generate more revenue streams for the treasury.

On the 12th of May, the game-centric blockchain will undergo one of its biggest changes ever as it is set to transition to Ethereum Layer 2.

The network confirmed the users can refer to around 10 hours of planned downtime for the migration process. In the duration, all on-chain action within the Ronin ecosystem will be halted, comprising token transfers, smart contract interactions, marketplace activity and blockchain based gaming actions.

May 12th. https://t.co/ltTdAUv1P5

— Ronin (@Ronin_Network) May 11, 2026

Ronin Prepares for Major Ethereum Layer 2 Migration

This “migration” is a significant network-wide change in architecture, well planned for Axie Infinity’s explosive growth.

The upgrade will enable the transition of the chain into an Ethereum Level 2 powered by OP Stack and connection with EigenDA for data availability, was said by Ronin. The aim is to enhance security, lower expenses, and increase scalability through utilizing Ethereum’s settlement layer.

Ronin warn users to complete any transactions required by their time of downtime before it happens to avoid any possible losses.Any on-chain game function, such as swaps, transfers and NFT activity, would not be allowed to take place until the migration finishes, he said.

Games on the Ronin will also not be able to play while the disruption is in progress, if they were running smart contracts or depended on wallet activity.If you made a game with smart contracts or were relying on wallet transactions to play the game, the disruption will temporarily stop those functionalities.

Read More: Ethereum Validator Exit Queue Hits 439K ETH After DeFi Exploit Sparks Rush

RON Inflation Set for Massive Drop

One of the biggest changes tied to the migration involves Ronin’s tokenomics. The network said RON’s annual inflation rate will fall from more than 20% to below 1% after the Ethereum Layer 2 transition. That would dramatically slow the pace of new token emissions entering circulation.

Ronin also expects new treasury income streams after the migration, including staking allocations, sequencer revenue, and expanded marketplace fee distribution.

Marketplace treasury allocation is expected to rise from 0.5% to 1.25%, creating a larger recurring revenue source for the ecosystem.

Builders to Receive Automated RON Rewards

The upgrade also introduces a new incentive model called Proof of Distribution. According to Ronin, the system will automatically distribute RON rewards to ecosystem builders based on measurable onchain activity. Metrics include NFT trading volume, DEX usage, active wallets, gas spending, and smart contract interaction levels.

The network said builders contributing heavily to Ronin’s growth could receive automated rewards without needing separate grant approvals.

Read More: $5.87M Ethereum Exploit Hits TrustedVolumes as 1inch Denies Any Protocol Breach