The Tezos protocol is a perfect example of a secure next-generation blockchain ecosystem with open access to on-chain governance, which enables anyone to propose an amendment on-chain and change the protocol if the proposal gets enough votes. For this, Tezos provides a unique formal process for efficient governance, in which any platform user is a stakeholder, and the selected changes are implemented automatically, without the creation of a hard fork.

On Wednesday, May 29, the first-ever amendment to the Tezos protocol is taking place. Dubbed ‘Athens,’ this amendment proposes two new changes to the protocol: an increase of gas limit for smart contracts from 400,000 gas to 1,000,000 gas, and the reduction of roll size from 10,000 XTZ to 8,000 XTZ.

WHAT DOES THAT MEAN?

The increase of gas limit for smart contracts will provide the developers with an ability to execute more complex decentralized apps, and pay more gas for simpler apps for the sake of faster computation. This potentially will also increase the block size and amount of computing required from the bakers to put into one block. Although this doesn’t change much for the bakers at the moment, the increased amount of commissions will increase the bakers’ rewards in case of full blocks.

From the technical perspective, the reduced roll size will make sure the rewards are close to average, thus making being with small pools and solo baking as good as baking with a big pool. Smaller rolls will also increase the number of overall stacked funds in the platform, as those, who have enough funds for one roll, and insufficient XTZ for two rolls will often be able to delegate two rolls after the changes. This potentially increases the number of community rolls, compared to the rolls from the Tezos Foundation, which plays its role in the decentralization of Tezos.

The decrease of a roll will also enable more network users to take part in the baking process, as they will be able to delegate more rolls with the same budget. Not only it pays a big deal in the further decentralization of the platform, but it also could enable solo baking, as opposed to the delegation of rolls.

The current quorum is 83.15%, and the super-majority is 99.88%, which puts the minimal quorum requirement at 81.39%, thus the amendment will be put into implementation. These numbers are also indicative and show how on-chain governance works in action.

The high participation in the voting suggests that the Tezos community is insightful in the details of the platform operation, and is ready to take action to improve the platform for all the current and future users.

Everstake has been successfully supporting Tezos staking for already a while now, and we welcome you to delegate to us and increase your Tezos assets today: https://everstake.one/tezos.