Protocol 'R': A Glimpse into Tezos’ Next Upgrade

Currently open for community feedback, Protocol ‘R’ introduces performance features that improves the Tezos protocol. It includes innovations designed to improve usability, scalability, and security while emphasizing active community participation in shaping its final form. Here's a closer look at what Protocol 'R' offers and how you can contribute to its development.

Nomadic Labs, a core contributor to Tezos, has presented Protocol ‘R’ as the next step in the blockchain’s evolution. The proposal’s features are informed by extensive research and feedback from previous protocol amendments. It aims to address key areas of improvement while aligning with Tezos' overarching goal: to create a flexible, efficient, and user-friendly ecosystem.

Central to the proposal is community engagement. Protocol ‘R’ is currently in a feedback phase, inviting bakers, developers, and stakeholders to contribute their insights on the proposal’s features and implementation. The collaborative process underscores the strength of Tezos’ on-chain governance, which allows for transparent, community-driven decision-making.

What Does Protocol ‘R’ Propose?

Protocol ‘R’ introduces several notable changes that focus on improving network efficiency, enhancing the experience for bakers and delegators, and supporting the scalability of Layer 2 solutions like Etherlink. Here’s a detailed breakdown:

1. Shorter Cycle Lengths

One of the most significant proposed changes is reducing the cycle length from approximately 2.84 days to just 1 day. This adjustment aims to streamline processes and make Tezos' Proof-of-Stake operations more responsive.

Key Impacts:

• Faster Staking Changes: Delegation adjustments will take effect in 5 days, compared to the current 14 days.

• Quick Unstaking Period: Users can finalize unstake operations in 4 days, down from 11 days.

• Daily Rewards: Attestation rewards will accrue daily, providing a smoother and more predictable experience for bakers and stakers.

Shorter cycles improve the user experience by reducing delays associated with staking, delegation, and governance-related processes. They also enable new bakers to earn baking rights faster, making the network more accessible.

2. Enhanced Rewards for DAL Participation

Tezos is preparing to fully operationalize its Data Availability Layer (DAL), a key component of Etherlink’s scalability. Protocol ‘R’ introduces a revamped reward structure to incentivize DAL participation while maintaining network integrity.

Proposed Changes:

• Dedicated DAL Rewards: A portion of consensus rewards (proposed at 10%) will be allocated to bakers who participate in DAL attestations.

• Participation Threshold: Bakers must attest to at least 64% of DAL slots in a cycle to qualify for these rewards.

• Slashing Mechanism: Dishonest attestations will result in penalties ranging from 100 tez to 0.10% of a baker’s frozen deposits per block.

DAL participation is critical for ensuring Etherlink’s scalability, allowing for high-throughput applications to operate seamlessly. These changes encourage active participation while deterring dishonest behavior, safeguarding the network.

3. Tighter Tolerance for Baker Inactivity

To enhance network reliability, Protocol ‘R’ proposes reducing the tolerance period for baker inactivity from 14 days to 3 days. This means that bakers who fail to participate in consensus operations for 3 consecutive days will be marked inactive and excluded from committees.

Potential Benefits:

• Faster recovery of network health in cases of prolonged inactivity.

• Ensures that consensus committees remain active and robust.

Bakers can reactivate within 2 days, aligning with the new cycle structure.

4. BLS Signature Scheme for Baking

The proposal also introduces the experimental adoption of BLS (Boneh-Lynn-Shacham) signatures. This feature enables grouping attestations into a single consensus operation per block, reducing complexity and paving the way for further efficiency improvements.

Potential Benefits:

• Simplified reward structures for stakers and bakers.

• Opportunity for shorter block times in the future.

Though still in the experimental phase, BLS signatures represent a forward-thinking approach to optimizing consensus operations.

5. Bug Fixes and Performance Enhancements

As with every protocol upgrade, Protocol ‘R’ includes critical bug fixes and optimizations to improve the network's overall performance and reliability.

How to Participate in the Feedback Process

Community input is vital to ensuring Protocol ‘R’ addresses the needs of all stakeholders. Nomadic Labs has opened a structured feedback period to gather insights, questions, and suggestions.

Feedback Timeline:

1. January 7–17: Feedback on proposed features and parameterization.

2. January 17–24: Feedback focused on parameterization only.

3. January 24 to mid-February: Finalization and preparation for submission.

You can join the discussion and share your feedback on Tezos Agora. Agora is the hub for Tezos governance discussions, offering a platform to collaborate, ask questions, and influence the proposal.

The Role of Etherlink in Protocol ‘R’

Etherlink, Tezos’ Layer 2 EVM solution, plays a central role in Protocol ‘R.’ The proposed changes, particularly around DAL participation, are designed to ensure Etherlink’s scalability and efficiency. By operationalizing the DAL on the mainnet and aligning incentives for bakers, Protocol ‘R’ lays the groundwork for high-throughput decentralized applications.

Etherlink has already demonstrated its potential to transform how Tezos handles scalability. Protocol ‘R’ reinforces its importance by integrating Layer 2 considerations into the core network’s operations.

Closing Thoughts

As Tezos gears up for its next protocol upgrade, it’s clear that 2025 will be another year of progress and collaboration. Protocol ‘R’ exemplifies the network’s ability to adapt, innovate, and engage its community in meaningful ways.

The proposed changes, from shorter cycle lengths to enhanced DAL incentives, reflect a thoughtful approach to improving user experiences and supporting Layer 2 scalability. With the feedback phase now open, it’s time for the Tezos community to come together and help finalize a proposal that continues to advance the network.

Visit Tezos Agora today to share your feedback, ask questions, and play a role in shaping the future of Tezos.

This Week in the Tezos Ecosystem

New Tezos-Based Paranormal Archive Project Announced by V. Ruins

Moving on from the exciting prospect of Protocol 'R,' it’s also great to see that creativity and art on Tezos is alive as ever. This week, we’re diving into an intriguing announcement that showcases Tezos’ ability to support unconventional and experimental projects, particularly in the realm of art and culture.

The Tezos ecosystem has long been a hub for new artistic and cultural ventures, and the latest announcement from NFT creator and researcher V. Ruins is no exception. Known for their thought-provoking projects, V. Ruins has unveiled a forthcoming initiative that combines the mystique of the occult with blockchain technology, leveraging Tezos to create a perpetual archive of paranormal and alien phenomena.

In a series of teasers shared on X, V. Ruins expressed their excitement:

This project is set to blend online paranormal lore, blockchain provenance, and cutting-edge large language model (LLM) technology to create a truly unique experience. Here’s how it works:

• Mint Occult Photos as NFTs: Collectors can mint NFTs featuring mysterious and unexplained images sourced from the vast troves of online paranormal communities.

• Investigate with an AI Informant: Each minted NFT allows collectors to ask up to five questions to "Cormac," the project’s LLM-based informant. These interactions uncover lore and context about the photo, drawing from both fictional and real-world influences.

• Dynamic Metadata and Provenance: The insights gained from these investigations are encoded into the NFT's metadata, along with the wallet address or Tezos domain of the participant. This feature ensures a transparent, traceable history of contributions to the archive.

V. Ruins highlighted the deliberate limitations of the investigation process:
"After mint, 5 questions is all you get; use them wisely."

This adds a layer of strategy and creativity for collectors, making each engagement personal and unique. With each interaction, the metadata becomes richer, transforming every NFT into a living document of exploration.

Although a release date has yet to be confirmed, V. Ruins assured their audience that the project is coming to Tezos soon, check out their X profile for the latest drops.

🔴 Now Streaming: Artist Spotlight | Mal Sheep

This week on TezTalks Radio, Marissa Trew sits down with Mal, a multidisciplinary artist and disability justice advocate, to discuss their journey into the blockchain space and the Tezos community. Learn how Mal is using art and technology to drive inclusivity and create a more accessible future in blockchain.

🌟 Our special guest is Mal, blending creativity and advocacy to shape the Tezos ecosystem.

🔍 In this episode, we’ll explore:

Mal’s Blockchain Journey: - How a passion for disability justice brought Mal to the Tezos community.

Inclusivity in Blockchain: - Why empowering marginalized voices is essential for equitable digital spaces.

Art Meets Social Justice: - Discover how Mal uses art to navigate complex systems and personal experiences.

Community-Led Change: - The role of grassroots initiatives in fostering innovation and inclusivity within Tezos.

Looking Ahead: - How the intersection of art, technology, and advocacy is shaping blockchain’s future.

Watch/listen the full episode on YouTube or your favorite platform.