Tezos, the self-amending proof-of-stake blockchain, and an Ethereum competitor, recently implemented its latest upgrade via Nairobi. In a release, the 14th network improvement went live at block #3,760,129, tagging along platform enhancement and the simultaneous unveiling of the Tezos Ecosystem DAO.
Even so, while the upgrade is bullish for network users, there was no significant impact on XTZ prices. As of writing, XTZ, the native currency of the Tezos network, has been lower in the past 24 hours and is yet to reverse June 2023 losses.
The Nairobi Upgrade
The Nairobi upgrade was the network’s 14th update and a collaborative effort by numerous teams and has introduced several mainnet enhancements that could improve user experience. Teams include Nomadic Labs, Marigold, TriliTech, Oxhead Alpha, Tarides, DaiLambda, and Functori.
Key improvements tagged by the Nairobi upgrade include enhanced transaction throughput meaning transactions can now be processed faster, and transaction fees will be lower. With this release, the Tezos protocol is faster, as its throughput has increased eight times. This improvement applies to various operations such as transactions, smart contract calls, Smart Rollup maintenance operations, and management operations.
Moreover, the blockchain now also supports Smart Rollup functions. With new functions and internal Layer-2 messages, Tezos can synchronize rollup kernels seamlessly with future Tezos protocol upgrades. Specifically, the blockchain has also improved its terminology for better communication and understanding. For faster consensus, the upgrade enhances the speed of pre-attestation propagation.
Tezos Ecosystem DAO
The Tezos community welcomes the Tezos ecosystem DAO to streamline on-chain funds deployment and treasury management for vital initiatives within the Tezos ecosystem.
With its launch, the decentralized automated organization (DAO) allows community members to submit funding requests for Tezos-related initiatives. These requests undergo curation, voting, and distributing XTZ. The DAO will be transparent, ensuring all activities are publicly visible to enhance trust and accountability within the community.
Initially, the DAO is governed by a three-out-of-five multi-sig setup, with participating organizations like Trilitech, Tezos Foundation, and Tezos India Foundation holding the keys.
Despite all these changes, XTZ prices remain under pressure and trail the performance of Bitcoin and Ethereum. As of writing on June 26, XTZ is changing hands at $0.80, up 13% from June 2023 lows. However, even with optimistic traders, XTZ bulls have failed to push prices above $0.95, marking June 2023 highs.
Overall, the cryptocurrency market appears to be bottoming up but is yet to close above crucial liquidation levels marking complete reversals from 2022 pits. XTZ remains bearish, down 45% from February highs, as prices are $0.10 away from December 2022 lows.