Hassan Maishera
On Wednesday, the Optimism team announced via X that Ronin has migrated to its OP Stack. Ronin on the OP Stack inherits Ethereum's security without paying Ethereum L1's fees.
The execution environment is EVM-equivalent (Hardhat, Foundry, and standard JSON-RPC all work without modification), which matters for every developer building on top of it. EigenDA handles data availability, reducing the cost of posting transaction batches to Ethereum L1.
Ronin's annual inflation was above 20 percent. Moving to an L2 model eliminates that cost. RON inflation drops to around 1 percent. The economics shift on three fronts:
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Sequencer profits flow to the Ronin Treasury rather than funding token inflation
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1.25% of all Ronin Marketplace fees will go to the Ronin Treasury (increased by 2.5x from 0.5% to 1.25%)
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A new Proof of Distribution model routes rewards to builders based on actual network activity, not validator status
Optimism’s main utility is to batch transactions on the Optimism network. Optimism allows users to enjoy lower gas fees on their transactions executed on the Optimism network through optimistic roll-up technology.
Optimism (OP) is a layer-two blockchain on top of Ethereum. Optimism benefits from the security of the Ethereum mainnet and helps scale the Ethereum ecosystem by using optimistic rollups. That means transactions are trustlessly recorded on Optimism but ultimately secured on Ethereum.
Optimism is one of the biggest scaling solutions for Ethereum with over $500 million in TVL. It is home to 97 protocols, the biggest being Synthetix (SNX), a derivatives exchange, Uniswap (UNI), a DEX, and Velodrome (VELO), an AMM. Users can begin their journey on Optimism by adding the chain on their Metamask and bridging tokens like ETH to the L2. On May 31, 2022, Optimism conducted a highly anticipated airdrop of its OP token.
OP is trading at $0.1463, down 4.9% in the last 24 hours.
