PIP-43 Activated: Reward Split Successfully Implemented
Pactus’s First Protocol Upgrade is Live
We are thrilled to announce that PIP-43: Split Rewards has been successfully activated at block 5076292. This represents Pactus’s first successful protocol upgrade, increasing the protocol version from 1 to 2.
Similar to a hard fork in proof-of-work blockchains, the protocol upgrade introduces fundamental changes to how Pactus operates, requiring network-wide consensus and coordination between validators. The successful and seamless activation of PIP-43 proves that Pactus is capable of implementing significant protocol improvements in the future.
This upgrade introduces a revolutionary change to our block reward distribution mechanism, implementing a 70/30 split between Validators and the Pactus Foundation.
Protocol Upgrade
In the world of blockchain technology, protocol upgrades represent the most significant changes a network can undergo. For proof-of-work blockchains like Bitcoin, these changes are called “hard forks” and require miners to upgrade their software to continue participating in the network. However, there is a chance that a percentage of miners may not upgrade their nodes, causing a fork in the blockchain.
Pactus’s consensus model is fork-resilient. The protocol upgrade will apply once the majority of validators (more than 70%) upgrade their nodes. Once the upgrade is activated, older nodes will no longer be able to sync with the network.
What Changed
Block Reward Distribution
The new reward split mechanism is now live, with each block reward (1 PAC) being distributed as follows:
- 70% (0.7 PAC) → Validator who proposed the block
- 30% (0.3 PAC) → Pactus Foundation addresses
This change ensures that validator incentives remain strong while providing predictable, transparent funding for the foundation’s operations and ecosystem growth.
Treasury Consolidation
As part of this upgrade, the balances from the Genesis Foundation and Team & Operations accounts have been successfully transferred to the Treasury account.
The transactions can be viewed here:
This consolidation streamlines our treasury management and ensures all future block rewards flow through a single, transparent mechanism.
The reward split mechanism extends the overall reward duration from 6 years to 10 years, significantly improving the long-term sustainability of the Pactus network. This ensures continued incentives for validators while providing stable funding for ecosystem development.
Community Support
The proposal received overwhelming support from the community, with the upgrade activating in less than a week. This means 70% of network validators upgraded their nodes, which is the required threshold for activation. If you have not upgraded your node, we highly recommend upgrading it to the latest version, as your node can’t sync with the network and won’t receive any block rewards.
Looking Forward
The successful activation of PIP-43 sets a precedent for future protocol upgrades and establishes Pactus as a blockchain capable of evolving through community support.
The Pactus Team is committed to building a sustainable, decentralized blockchain ecosystem. This historic protocol upgrade represents our continued dedication to innovation, transparency, and community-driven development.