The Tezos blockchain has successfully launched its 17th major protocol upgrade, known as Quebec, on January 20, 2025. This latest update, developed by Nomadic Labs, TriliTech, and Functori, brings significant enhancements in performance, staking, and economic mechanisms, according to Tezos Spotlight.

Faster Block Processing

One of the standout features of the Quebec upgrade is the reduction in block time for layer 1 transactions from 10 seconds to just 8 seconds. This improvement means transactions are processed more swiftly, with transaction finality now achieved in 16 seconds. This is a notable advancement over Ethereum’s approximate 15-minute finality and challenges Solana’s 13-second finality.

Enhanced Staking Opportunities

Quebec also introduces changes to Tezos’ staking system. Bakers, who validate transactions and secure the network, can now accept up to nine times their own stake from external stakers, an increase from the previous five-fold limit. This adjustment is designed to meet the rising demand for staking capacity while preventing stake concentration among large bakers. Staking now offers rewards three times higher than delegation, making it a more appealing option.

Refined Economic Mechanisms

The upgrade includes an improved ‘Adaptive Issuance’ mechanism, which balances staking rewards with network security needs. This refinement aims to minimize inflation of the tez cryptocurrency by adjusting the issuance limit when staking approaches the 50% target, ensuring that staking incentives align with the security benefits.

Commitment to Decentralization

The Quebec upgrade reflects Tezos’ commitment to fostering a decentralized ecosystem. The reduction in block time was implemented after rigorous testing to maintain network stability. Importantly, it does not increase hardware requirements for bakers, allowing continued participation with affordable infrastructure.

The expansion of the external stake limit underscores the network’s dedication to supporting a robust and decentralized baker ecosystem, which is crucial as the network grows and staking demand rises.

Governance and Future Prospects

This protocol upgrade highlights the strength of Tezos’ governance process, which involves community debate and on-chain approval. The successful activation of Quebec demonstrates the network’s ability to adapt and evolve through decentralized decision-making.

Looking ahead, discussions are already underway for the next upgrade, dubbed ‘R’. This upcoming update aims to build on the foundation laid by Quebec and further advances Tezos’ vision for high performance.

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