Introducing Rio: The 18th Tezos Protocol Upgrade Proposal

Tezos governance never stands still. With Quebec now live, the next proposal, Rio, is here, bringing changes aimed at boosting scalability and refining Tezos’ staking model.

For those looking to participate in governance, the true name of the proposal is its hash:

PsRiotumaAMotcRoDWW1bysEhQy2n1M5fy8JgRp8jjRfHGmfeA7

To submit or upvote the proposal via the Octez client, use the command:

octez-client submit proposals for <baking_key> PsRiotumaAMotcRoDWW1bysEhQy2n1M5fy8JgRp8jjRfHGmfeA7 --force

Announced by Nomadic Labs, Trilitech, Functori, and shaped by community feedback, let’s go over the key changes for the upcoming proposal.

Key Changes in Rio

Adjusted Rewards Model

• 10% of participation rewards will now be allocated to the Data Availability Layer (DAL), which is critical for Tezos L2 scalability.

• If at least 66% of baking power participates in the DAL, only those bakers receive DAL rewards. If the threshold isn’t met, all active bakers split the DAL rewards.

• DAL participation is opt-out—bakers are automatically included unless they choose otherwise.

Shorter Network Cycles (1-Day Cycles)

• Instead of waiting three days, cycle lengths are now just one day, which means:

  • Staking & delegation changes take effect in two days instead of six.

  • Unstaked funds can be finalized in four days instead of ten.

  • Staking parameter updates activate in five days instead of fourteen.

  • Attestation rewards are paid daily instead of every three days.

Lower Baker Inactivity Tolerance

• Bakers are now marked inactive after two days instead of eight.

• Reactivation is faster—bakers can return to active status in just two days instead of six.

Gas Fee Adjustment for User Transactions

• Transactions between user wallets (implicit accounts) will see a small gas fee increase of 0.0002 tez to better reflect storage costs.

• Transactions involving smart contracts remain unchanged.

With shorter cycles and better DAL incentives, Rio ensures Tezos remains efficient and scalable. The shift to one-day cycles makes staking and baking operations more fluid, while DAL rewards encourage wider participation in Tezos L2 scalability efforts.

But perhaps the most important takeaway is how Rio was shaped by the community. Through discussions and feedback rounds, several refinements were made, including:

• A higher inactivity tolerance for bakers than originally proposed.

• No slashing for dishonest DAL behavior (only forfeiting DAL rewards).

• More accessible RPC endpoints for developers.

Every protocol upgrade on Tezos is a community effort, and Rio reflects this ongoing collaboration.

What’s Next?

Governance voting is underway, and bakers will play a crucial role in deciding whether Rio moves forward. If you’re a baker, now is the time to run a DAL node, test the upgrade, and prepare to participate in the governance process.

Tezos is pushing forward, and Rio is the next step in making the network faster, more resilient, and more adaptable. Let’s see if the community is ready to take the next jump in Tezos’ journey of evolution.

This Week in the Tezos Ecosystem

A New Chapter for Tezos and Museum of the Moving Image

With Rio now on the horizon, Tezos is again proving its ability to evolve and adapt. But beyond network upgrades, Tezos continues to shape the cultural landscape of digital art. Fresh off an unforgettable presence at NFT Paris, where the ecosystem showcased decades of creative evolution, Tezos is turning its attention to New York City for its next artistic endeavor.

The Museum of the Moving Image (MoMI) is teaming up once again with the Tezos Foundation and the Processing Foundation for the next chapter in their partnership: Compositions in Code: The Art of Processing and p5.js. This new exhibition will spotlight the creative possibilities of generative art, featuring some of the most innovative artists working at the intersection of code and visual expression.

Opening on March 6, the exhibition will take over MoMI’s Schlosser Media Wall, showcasing a rotating lineup of artistic pairings:

• Marius Watz & Aleksandra Jovanić (March 6 - May 4)

• LIA & Sarah Ridgley (May 8 - June 29)

• Robert Hodgin & Melissa Wiederrecht (July 3 - August 24)

The opening night will feature a discussion between artist Marius Watz, Aleksandra Artamonovskaja (Head of Arts at Trilitech), and Roopa Vasudevan (Processing Foundation mentor), moderated by Regina Harsanyi (Associate Curator of Media Arts at MoMI). This event marks yet another milestone in Tezos’ ongoing commitment to supporting digital artists and fostering innovation in generative art.

📅 Opening Night Discussion & Reception
📍 Museum of the Moving Image, NYC
🗓️ March 6
⏰ 7PM - 9PM EST
🔗 RSVP: lu.ma/kbs639bj

With MoMI and Tezos continuing their partnership, Compositions in Code adds another exciting dimension to Tezos’ presence in the digital art world. If NFT Paris was a celebration of the past and present, this exhibition offers a glimpse into the future—where creativity and code come together to push the boundaries of artistic expression.

Midas Brings Institutional-Grade Yield to Etherlink

Following the announcement of Compositions in Code at the Museum of the Moving Image, another major milestone is taking shape on Etherlink. The Tezos-powered EVM Layer 2 continues to gain momentum, and this week, it welcomes Midas, a platform specializing in tokenized yield strategies.

With this integration, Midas’ mTBILL and mBASIS tokens are coming to Etherlink, unlocking institutional-grade yield opportunities for DeFi users. These assets offer exposure to short-term U.S. Treasury Bills (mTBILL) and risk-managed basis trade strategies (mBASIS), bringing real-world yield directly on-chain.

Midas introduces two key assets:

• mBASIS — Optimized basis trade strategies designed for stability and performance

• mTBILL — Secure, tokenized exposure to U.S. Treasury Bills with on-chain transparency

Both assets are fully collateralized and managed by Midas, making them a strong addition to Etherlink’s growing DeFi ecosystem. At launch, they will be available for:

• Investing in Midas.app

• Swapping on IguanaDEX

• Lending and Borrowing on Superlend

This marks a key step in Etherlink’s vision for frictionless, institutional-grade DeFi. By bringing Liquid Yield Tokens (LYTs) to the platform, Midas expands low-cost, scalable, and accessible yield strategies for the Tezos ecosystem.

Etherlink is also teasing a major announcement next week. With momentum building, another major development for DeFi on Tezos could be just around the corner.

Game Spotlight: AutoHero

Get ready to lock, load, and dive into the fast-paced world of AutoHero, a thrilling 2D side-scrolling shooter that’s making waves on Tezos. With over 2 million downloads and counting, this game combines adrenaline-pumping action with the cutting-edge possibilities of Web3 gaming, proving that Tezos is a powerhouse for innovative play-to-earn experiences.

In Autohero, you step into the boots of a gun-wielding hero tasked with taking down waves of monstrous enemies across 150 challenging missions. The gameplay is simple yet addictive: move, aim, and let the auto-firing mechanics do the heavy lifting as you dodge bullets and collect rewards. With 140 unique weapons and a roster of evolving heroes—each unlockable through puzzle-piece collection—this game keeps you on your toes with its blend of strategy and chaos.

But Autohero isn’t just about blasting through foes. Built on Tezos, it transforms in-game achievements into tangible digital assets. Heroes, represented as NFTs, can be collected, traded, and owned outright, giving players true control over their gaming journey. Whether you’re upgrading your arsenal with coins and gems or snagging quest stars to save the world, every move feels rewarding—both in-game and on-chain.

Standout Features

• Fast-Paced Action: A 2D platformer with auto-shooting mechanics that’s easy to pick up but tough to master.

• NFT Heroes: Collect and trade unique, blockchain-backed heroes with distinct abilities.

• Play-to-Earn Rewards: Earn coins, gems, and NFTs as you battle through missions.

• Massive Community: With 2M+ downloads and 120,000 monthly active players, you’re joining a thriving player base.

Join the Fight!

Ready to test your courage against hordes of enemies—and own a piece of the action? AutoHero is available now on Android and iOS.

• Play Now: Android | iOS

• Follow the Buzz: Check out @AutoHeroTezos on X for the latest quests and community events.

Events

Tezos at Denver: Full Event Schedule & Meetups

The Tezos ecosystem is making waves at ETHDenver 2025 with a full lineup of keynotes, panels, and side events bringing together builders, developers, and community members. From the main event to exclusive meetups and real-world asset (RWA) discussions, there’s something for everyone. Secure your spot and join the conversation on the future of Tezos, Etherlink, and decentralized finance!

📅 Check out the full calendar of events: Tezos at ETHDenver

🔴 Now Streaming: Inside Pike’s Arena with Alset Studio’s Andrei Duminica

This week on TezTalks Live, we’re joined by Andrei Duminica, Director at Alset Studio, the team behind Pike’s Arena. Andrei shares insights on building Web3 games, integrating Tezos, and the evolving relationship between blockchain and the gaming industry.

Our special guest is Andrei Duminica, who is bringing Web3 gaming to life with Alset Studio.

🔍 In this episode, we’ll explore:

Alset Studio’s Vision: - How the team behind Game of Nations and World at War is approaching Web3 game development.

Pike’s Arena & Tezos: - The role of Tezos in the game’s ecosystem and how blockchain enhances the player experience.

Web3 Gaming Adoption: - Why blockchain gaming hasn’t taken off yet and what it will take to change that.

Overcoming Gamer Resistance: - How to market Web3 games to mainstream audiences and build games players actually want.

Looking Ahead: - The future of blockchain in gaming and what’s next for Alset Studio.

Watch the full episode on YouTube.