PIP-55 Activated: Block Reward Halving Successfully Implemented
The Pactus network has successfully activated PIP-55: Block Reward Halving at block 7,675,113, marking another important milestone in the evolution of the protocol. This protocol upgrade increases the network to Protocol Version 4 and introduces Pactus’s first block reward halving schedule.
Unlike Proof-of-Work blockchains that rely on hard forks, Pactus uses a coordinated protocol upgrade mechanism. Once a supermajority of validators signaled support for Protocol Version 4, the network automatically transitioned to the new protocol without creating competing chains or interrupting block production.
What Changed?
PIP-55 introduces a predictable issuance schedule by reducing the block reward over time. Instead of maintaining a constant reward forever, the network now follows a long-term monetary policy with scheduled halvings.
The reward schedule is:
| Block Height | Block Reward |
|---|---|
| 1 – 8,000,000 | 1.000 PAC |
| 8,000,001 – 24,000,000 | 0.500 PAC |
| 24,000,001 – 56,000,000 | 0.250 PAC |
| 56,000,001 onward | 0.125 PAC |
This change gradually reduces inflation while preserving a permanent tail emission that continues to incentivize validators and secure the network for the long term. The existing 70/30 reward split between validators and the Pactus Foundation remains unchanged, with both portions scaling proportionally after each halving.
Why It Matters
A sustainable blockchain requires a sustainable monetary policy.
By introducing scheduled reward reductions, Pactus establishes a transparent and predictable issuance model that balances network security with long-term inflation control. As the network continues to grow, transaction fees are expected to play an increasingly important role in validator revenue while block rewards gradually decrease.
PIP-55 represents another step toward a mature and economically sustainable blockchain protocol.
Important Notice for Validators
The upgrade became active at block 7,675,113 after the network reached the required validator support.
If your node has not been upgraded to a Protocol Version 4 compatible release, it will no longer be able to synchronize with the network, participate in consensus, or receive block rewards.
All validator operators should upgrade immediately if they have not already done so.
Looking Ahead
Protocol upgrades are how Pactus continues to evolve while maintaining a single finalized blockchain. Thanks to the protocol upgrade mechanism introduced in PIP-51, new features and protocol improvements can be activated safely through validator coordination rather than disruptive hard forks.
We would like to thank all validator operators and community members who upgraded their nodes and helped ensure another smooth network transition. Together, we continue building a more secure, sustainable, and decentralized blockchain.