Pactus Newsletter, July 2026
What Happened in July
Two things defined July: a new software release, and a protocol upgrade that changes how new PAC tokens enter circulation. Both were planned, both went smoothly.
Pactus 1.16.0 (New Jersey)
Released July 9, 2026. The headline change in this release is Block Reward Halving, introduced through PIP-55. In simple terms, the number of new PAC coins created for every new block will shrink at defined points in the future instead of staying the same forever. This is called a “halving” because the reward cuts in half each time.
New Jersey also activates Secp256k1 support. This lets Pactus addresses work with the same cryptographic method used by Bitcoin and most hardware wallets, so more wallet types can now interact with Pactus directly.
Important: Starting with this release, every wallet must have a password. If your wallet currently has no password, set one before you upgrade. Wallets without a password will not open after the upgrade.
Several security issues were also fixed, covering how the software handles unusual or malformed network data. No user action is needed for these; they are resolved automatically once you upgrade.
If you run a validator node: upgrade now. Nodes on the old version cannot produce blocks or earn rewards.
PIP-55 Activated: New Reward Schedule Live
Activated July 14, 2026, at block 7,675,113. Following the release above, the network itself switched over to the new rules. This is called Protocol Version 4.
Pactus does not use “hard forks” the way some other blockchains do. Instead, once enough validators signal support for a change, the whole network switches to the new rules at the same time, with no chain split and no interruption. That is what happened here.
The new 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 |
The 70/30 reward split between validators and the Pactus Foundation stays the same at every stage.
A shrinking reward over time means PAC issuance slows down gradually instead of remaining fixed forever. Over time, transaction fees are expected to make up a larger share of what validators earn.
If you run a validator: your node must be on a Protocol Version 4 compatible release. If it is not, it can no longer sync with the network, join consensus, or earn rewards.
Stay Connected
Pactus community activity continues across Discord, Telegram, and X. Wherever you are most active, that is the right place to ask questions or follow along.
Thank You
Thanks to every validator who upgraded on time, and to everyone who helped others do the same. July was a clean, well-coordinated upgrade.
On to the next one.