KEY TAKEAWAYS
- Tezos has activated its 18th protocol upgrade, the Rio protocol, enhancing network efficiency and scalability.
- The Rio upgrade reduces network cycle length to one day, speeding up changes for bakers, stakers, and delegators.
- New incentives for Data Availability Layer participation aim to boost Layer 2 scalability and network integrity.
- Stricter inactivity rules for bakers are introduced to prevent network slowdowns and ensure resilience.
The Tezos blockchain has successfully activated its 18th protocol upgrade, known as the Rio protocol, at block #8,767,488 on May 1, 2025. This upgrade, developed by Nomadic Labs, TriliTech, and Functori, introduces several significant changes aimed at improving the network’s efficiency and scalability.
Faster Network Cycles and Enhanced Staking
One of the key changes in the Rio upgrade is the reduction of network cycle length from approximately three days to just one day. This adjustment allows for quicker implementation of changes by bakers, stakers, and delegators. As a result, the time required to unstake funds has been reduced to four days. Despite these changes, the overall governance process duration remains unchanged at 70 days, with voting periods still lasting 14 days.
Incentives for Data Availability Layer Participation
The Rio protocol also introduces rewards for participation in the Data Availability Layer (DAL), a crucial component for Layer 2 scalability and the Tezos X roadmap. With the upgrade, 10% of participation rewards are allocated to DAL participation, encouraging smooth operation and honest behavior among participants. Bakers are now required to run a DAL attester node by default, although opting out is possible.
The new reward distribution will take effect once 66% of the baking power participates in the DAL. Currently, participation stands at 31% and is gradually increasing. Until the threshold is met, the 10% DAL rewards will be distributed among all bakers. For those not yet participating, a tutorial is available to assist in setting up a DAL node on the Ghostnet testnet.
Stricter Inactivity Tolerance for Bakers
To enhance network resilience, the Rio upgrade reduces the tolerance for baker inactivity. Bakers are now marked as inactive after two days of inactivity, and they must re-register to regain consensus rights. This change aims to minimize the risk of network slowdowns caused by unresponsive bakers.
The comprehensive feedback received during the proposal phase contributed to the finalization of the Rio upgrade. This collaborative approach is expected to continue as Tezos progresses towards its next proposal, known as ‘S’. For more details on the Rio protocol, visit the official announcement here.
Why This Matters: Impact, Industry Trends & Expert Insights
The Tezos blockchain’s activation of its 18th protocol upgrade, the Rio protocol, marks a significant step in enhancing the network’s speed and resilience. By reducing network cycle length and incentivizing participation in the Data Availability Layer, Tezos aims to improve efficiency and scalability.
A recent Chainbits report highlights the trend of blockchain platforms like Tezos enhancing user experience and offering more flexible staking options through strategic upgrades. This aligns with the Rio protocol’s focus on improving network efficiency and scalability.
As per insights from a CoinStats report, expert opinions suggest that the Rio upgrade is part of Tezos’ ongoing effort to enhance its blockchain functionality, which may positively influence its future market position. This supports the significance of the Rio upgrade in potentially boosting Tezos’ scalability and staking experience.
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