Tezos has activated its 21st protocol upgrade, known as Ushuaia, at block 13,857,889, introducing a series of enhancements aimed at improving network scalability, governance flexibility, and long-term security. Developed by Nomadic Labs, Trilitech, and Functori, the upgrade was deployed without requiring a hard fork, reflecting Tezos’ self-amending governance model.
The latest protocol update forms part of the broader Tezos X roadmap, which focuses on expanding the blockchain’s capacity to support high-performance decentralized applications, including decentralized finance (DeFi), gaming, and other data-intensive services.
The Ushuaia upgrade increases the Data Availability Layer (DAL) bandwidth by 15 times to 10 MB per second, enabling Tezos-based applications and rollups to process significantly higher transaction volumes while reducing data bottlenecks.
Faster Data Processing and Improved Rollup Performance
A major component of the upgrade is the expansion of the Data Availability Layer, which is designed to improve the network’s ability to distribute transaction data efficiently. The higher throughput is expected to benefit applications such as Etherlink, Tezos’ Ethereum Virtual Machine-compatible rollup, by supporting hundreds of thousands of transactions per second under suitable operating conditions.
The protocol also introduces dynamic DAL attestation lag, reducing confirmation times for data stored through the Data Availability Layer from approximately 66 seconds to between 12 and 18 seconds. The improvement is expected to accelerate rollup-related operations, including faster withdrawals on Etherlink, while maintaining the network’s existing security and validator reward mechanisms.
Another significant change affects governance for rollup infrastructure. Previously, upgrades to proof-generating virtual machines (PVMs) required approval through Tezos’ Layer 1 governance process. Under Ushuaia, rollup-specific PVM upgrades can now be approved through governance mechanisms operating at the rollup level, allowing infrastructure projects to introduce updates more efficiently without waiting for full protocol governance cycles.
The upgrade also streamlines governance by allowing rollup-specific virtual machine upgrades to be approved independently, reducing development timelines for infrastructure such as Etherlink.
Testnet Features Prepare for Future Releases
In addition to the mainnet improvements, Ushuaia introduces several experimental capabilities on the testnet that could be incorporated into future protocol upgrades.
Ushuaia, the 21st Tezos protocol upgrade is live!
⚡ DAL bandwidth increase → scaling data availability for Smart Rollups
🛠️ Dynamic DAL attestation lag → optimising confirmations
🔧 Rollup-aligned PVM upgrades → advancing Tezos X infrastructure pic.twitter.com/cN15xp5Wya
— Tezos (@tezos) June 30, 2026
Among these is enshrined liquid staking, a native staking framework designed to issue sTEZ tokens that automatically accumulate staking rewards without relying on third-party providers. Another addition is a new tz5 account type based on ML-DSA-44 digital signatures, intended to improve resistance against potential threats posed by future quantum computing technologies.
The protocol also includes WASM PVM Version 6, which prepares Etherlink’s storage architecture for future performance improvements and an eventual transition toward a RISC-V-based infrastructure.
These experimental features are expected to undergo additional testing before being considered for deployment on the Tezos mainnet.
Market Reaction Remains Cautious
Despite the technical enhancements introduced through Ushuaia, Tezos’ native token, XTZ, showed little immediate market reaction following the activation. As of June 30, 2026, the cryptocurrency was trading at approximately $0.2088 with a market capitalization of about $206 million, while its price remained nearly unchanged over the previous 24 hours.
The muted response suggests investors are placing greater emphasis on long-term adoption of the new capabilities rather than short-term speculative trading. Exchanges, including Ourbit, completed support for the protocol upgrade without interrupting trading, helping ensure a smooth transition for users.
Market participants are expected to monitor adoption of Etherlink, utilization of the expanded Data Availability Layer, and progress of testnet features such as liquid staking and quantum-resistant accounts, which could influence future network growth and developer activity.
The Ushuaia upgrade represents another step in Tezos‘ ongoing effort to enhance blockchain performance while maintaining its forkless governance model, positioning the network for future scalability and evolving security requirements.