Ushuaia: Breaking Down Tezos' 21st Protocol Upgrade Proposal
A simpler look at what Tezos bakers are currently voting on, and why this proposal matters for the network's future
6 minute read
Tezos bakers are back in voting mode, as the network’s 21st protocol upgrade proposal, Ushuaia, has now been injected and entered the Proposal period of governance.
This latest upgrade proposal brings a handful of notable changes to the protocol, with most of the focus landing on Tezos X infrastructure, Smart Rollup performance, and the early testing of two features that could become much more relevant down the line.
So, let’s take a high-level look at what Ushuaia brings to the table.
A Stronger Backend for Tezos X #
A big part of Ushuaia focuses on strengthening the infrastructure Tezos X is being built around, particularly the Data Availability Layer (DAL) and Smart Rollups.
Without getting too deep into the weeds, the DAL is a core part of Tezos’ scaling design. It is what allows Smart Rollups to publish and access large amounts of data without pushing all of that load directly onto Layer 1, making it possible for Tezos to scale without simply bloating the base chain.
The first major change here is a substantial increase in DAL bandwidth, jumping from roughly 0.66 MB/s to 10 MB/s. That is a sizeable expansion in the amount of data Tezos can make available every second, giving Smart Rollups far more breathing room as the network prepares for heavier rollup usage in the future.
Ushuaia also introduces what the core devs call Dynamic DAL Attestation Lag, which changes how quickly that data can move through the system. Instead of DAL data always waiting through the same rigid delay before becoming usable, that waiting period can now be adjusted depending on how quickly the required attestations come in. In short, data does not have to sit around longer than necessary before Smart Rollups can make use of it.
And the backend tuning does not stop there. Ushuaia also includes upgrades to the WASM PVM, which you can think of as the internal workspace where Smart Rollups do their processing behind the scenes.
Ushuaia makes that workspace more efficient when it comes to loading data and preparing storage before tasks are executed, helping rollups run more smoothly as the network continues building toward heavier scaling usage.
Taken together, these changes are all part of Tezos getting its scaling foundation into place. But Ushuaia doesn’t stop at backend improvements. It also introduces two separate feature-flagged additions that give the community an early look at what may be coming further down the line.
Tezos Liquid Staking Takes Its First Step Into Testing #
Beyond the infrastructure upgrades, Ushuaia also includes one of the more talked-about additions in recent weeks: Enshrined Liquid Staking.
This is the proposed native Liquid Staking Token model on Tezos (sTEZ**)**, which would eventually allow users to stake their tez while also receiving a liquid tokenized representation of that position that can still be moved or used across DeFi, rollups, etc. In other words, it opens the door for users to keep earning staking rewards without having their capital sit completely idle.
The feature is included behind a feature flag, which allows it to be tested and evaluated on testnets, but it will not automatically activate on mainnet at this stage. This step allows the community to experiment with the system on testnets and prepare for possible future activation once testing is complete.
If you want to learn more about how Tezos’ proposed Liquid Staking Token works, I go into it in more detail here: Understanding Tezos’ Proposed Liquid Staking Token (sTEZ).
Preparing for Quantum-Resistant Accounts #
The other feature-flagged addition in Ushuaia is Post-Quantum User Keys, which are new types of accounts designed to resist future quantum computing attacks.
Put simply, these keys use cryptography that could stay secure even if powerful quantum computers exist down the line. You can think of them like stronger locks on a door, they make it much harder for a future technology to break in and compromise your funds.
Like the Liquid Staking feature, Post-Quantum User Keys are included behind a feature flag, which means they are currently for testing and experimentation only, and will not automatically activate on mainnet.
This is an early step in preparing Tezos for the next era of account security, giving developers and the community a chance to explore how these keys behave and integrate before wider adoption.
It’s worth mentioning that there was another feature suggested for Ushuaia that didn’t make it into the proposal. The reason? Community feedback during the heads-up process on Tezos Agora. Almost all features in this proposal went through that same loop, which clearly shows why this feedback loop is so important, the community’s input directly affects what features make it into the proposal.
Ushuaia is an important step forward for Tezos, bringing a range of features and refinements that will make the network’s foundations much stronger and prepare it for the future. As always, I’ve tried to keep this at a high level, so if you’re interested in more details about the individual features, check the announcement on the Nomadic Labs blog.
You can also follow the proposal’s progress through governance on Tezos Agora. The proposal is now live, so bakers can vote, and users should make sure their chosen baker is aware.
After all, governance is one of our strongest tools. Let’s put it to work!