Kaspa (KAS) is set for its most significant network upgrade to date with a major hardfork scheduled for May 5, 2026. The upgrade, detailed by contributor Terah, is designed to expand the Layer 1 blockchain's capabilities beyond pure speed and payments, introducing foundational features like native assets and enhanced programmability while maintaining its proof-of-work (PoW) core.
The "Covenant-centric" hardfork will bring several key innovations. A major addition is the launch of native assets directly on Kaspa's base layer, supporting KRC20-style tokens that exist on Layer 1 without relying on external smart contract systems. These assets will enable atomic transfers and inline covenant proofs within wallets. The upgrade also introduces Covenants++, an advanced system for programmable spending rules inspired by Bitcoin research, enabling use cases like escrow, conditional transfers, and vault security.
Furthermore, the hardfork lays the groundwork for future scalability through the Computational DAG (CDAG) for tracking program resources and the foundation for vProgs—sovereign programs that execute off-chain and settle on-chain. It also adds native zero-knowledge (ZK) proof verification on Layer 1, with planned Groth16 support for trustless bridging and privacy-focused applications.
To aid development, the upgrade will include the release of SilverScript, a high-level programming language designed to simplify covenant and program creation. The rollout involves multiple phases: Testnet 12 will reset in early February 2026 for covenant and native asset testing, a sequencer commitment proposal is expected mid-February to improve decentralization, leading to the mainnet activation on May 5. This follows the Crescendo upgrade in 2025, which increased network throughput to 10 blocks per second.
Analysts suggest this comprehensive technological leap could be a defining moment for Kaspa's long-term ecosystem growth and a potential catalyst for the KAS token, especially as the network aims to attract developers seeking token issuance and programmable functionality without leaving its PoW environment.
