Calypso: Third Protocol Upgrade Proposal For Etherlink

For most blockchains, upgrading protocols is a messy process. Hard forks split communities, governance becomes a battleground, and users are left scrambling to adapt. Etherlink is flipping that script. Already on its third protocol upgrade proposal, Calypso is proving that major improvements do not have to mean major disruptions. Let’s take a look at what is being proposed for this exciting upgrade to the Tezos EVM-compatible layer 2 blockchain, Etherlink.

Improved Performance #

Calypso brings a huge performance boost to the network, promising up to 30x faster smart contract storage. That is like swapping out an old hard drive for a high-speed SSD. Data loads faster, apps run smoother, and everything just feels better. This speed boost is a game-changer for dApps, like decentralized exchanges and DeFi platforms that rely on fast storage access. The key to this is the Virtual Machine (VM) caching, which optimizes read and write operations, cutting unnecessary lag and making execution lightning-fast.

Smarter Storage Management #

Instead of storing every single block in history on full Rollup Nodes, Calypso streamlines storage, keeping only the latest block while making the full history available through Octez EVM Nodes. Less storage needed, more efficiency, and no loss of data. It is like decluttering your computer but still having access to everything in the cloud. These foundational improvements make Etherlink faster, leaner, and more connected than ever before.

Faster Bridge Back To Layer 1 #

Moving tez from Etherlink to Tezos L1 currently can feel like waiting in traffic. Calypso introduces a new precompiled contract entrypoint, which lays the groundwork for much faster withdrawals. Imagine switching from city streets to the express lane. With less congestion and smoother movement, transactions flow with ease. This change will also align with the further expansion of the FA token bridge.

Governance Update #

With the Quebec upgrade, Tezos block times dropped to eight seconds, and Etherlink is updating its governance contracts to stay in sync. Think of it like keeping your phone’s software up to date. Skip the update, and you are left with bugs and slow performance. This improvement will keep voting, security, and decision-making fully aligned with Tezos L1, ensuring everything runs efficiently.

Reliability Improvements #

A blockchain is only as strong as it is reliable, and Calypso brings key improvements to keep Etherlink running smoothly, even under unexpected conditions. The kernel now uses events to notify the sequencer of delayed transaction flushes, reducing downtime risks caused by unforeseen network hiccups. This means a more resilient system, better uptime, and a smoother experience for users and developers alike.

Beyond this, Etherlink’s infrastructure has been undergoing continuous upgrades to enhance both performance and stability over the past few months. For a deeper dive into these improvements, you can read more about them here.

The Road to Mainnet: Tezos Bakers, Your Vote Decides #

Calypso is already live on the Etherlink Testnet, but its future rests in the hands of Tezos L1 bakers. Since Etherlink is built on Tezos Smart Rollup technology, Tezos bakers have the final say on whether these upgrades go live on mainnet.

If you are a Tezos baker, this is your chance to shape the future of Etherlink. Head to governance.etherlink.com to track the proposal and vote.

No Forks, No Chaos, Just Progress #

Calypso is not just a protocol upgrade, it is another example of how blockchains can evolve. No forks, no breakage, no downtime. Thanks to Tezos governance, it is steady, seamless progress. Etherlink is proving that blockchains do not have to follow the same disruptive cycle. Upgrades can be smooth, governance can be strong, and innovation can keep moving forward.

Why Calypso Matters #

Calypso is a milestone upgrade for Etherlink, delivering massive performance improvements, a groundwork for faster bridging to Tezos L1, governance updates in sync with Tezos L1, and smarter storage management. These changes make Etherlink faster, more efficient, and better connected to the Tezos ecosystem.

More speed. More efficiency. More seamless upgrades. That is the future Etherlink is building for the digital commonwealth, just like what Tezos L1 has already done, and now Tezos L1 and Etherlink will be more in sync than ever before.

Get Involved #

Want to stay in the loop? Join the Etherlink Discord or follow Etherlink on X for real-time updates. Tezos bakers, make your vote count on February 24, 2025, and help bring Calypso to life. For a deeper dive into the technical details, check the kernel change-log here. Etherlink is moving faster than ever and this is an exciting time in both Tezos L1 and L2 history. Now is the time to lock in so buckle up and let’s get building!