Welcome to The Protocol, CoinDesk’s comprehensive summary of the latest developments in cryptocurrency technology.
Solana Poised for Significant Upgrade Following Overwhelming Community Support
The Solana community has made a decisive move by approving the highly anticipated Alpenglow upgrade, signaling a major technical evolution for the network. As reported on Solana Status via X, an impressive 98.27% of SOL stakers who participated in the vote backed the proposal, with a mere 1.05% dissenting and 0.36% abstaining. Participation in the voting process was robust, with 52% of the network’s stakers casting their votes. This upgrade aims to introduce a new consensus protocol that promises to significantly enhance transaction finality and overall network efficiency. Central to the Alpenglow upgrade are two innovative components, Votor and Rotor, which will replace the existing Proof-of-History and TowerBFT systems. The current Proof-of-History mechanism timestamps transactions for order preservation without hindering the network’s speed, while TowerBFT manages the validators’ voting process. The Alpenglow upgrade will revamp these systems, with Votor expected to reduce transaction finality from over 12 seconds to approximately 150 milliseconds, allowing for near-instant confirmations. Rotor, set for a future rollout, aims to decrease data transfer requirements among validators, a vital enhancement for high-demand sectors like decentralized finance (DeFi) and blockchain gaming. With the necessary approval now attained, Solana is gearing up for the implementation of this transformative upgrade, which is anticipated to enhance speed, resilience, and scalability within its ecosystem.
Ethereum Foundation to Liquidate 10K ETH to Fund Development
The Ethereum Foundation (EF) has announced its intention to sell 10,000 ETH through centralized exchanges over the upcoming weeks, as stated in a post on X. This move is designed to fund ongoing research and development, ecosystem grants, and other charitable donations. At current market values, the ETH sale represents an estimated $43 million. The foundation clarified that the conversions will occur through multiple smaller transactions rather than a single large sale. This announcement follows the EF’s introduction of a new treasury policy in June, which limits annual operational expenses to 15%, establishes a multi-year reserve buffer, and sets a gradual trajectory for more frugal spending in the long term. Additionally, the foundation had previously sold another 10,000 ETH to SharpLink Gaming in July, marking the firm as the first publicly traded entity to purchase ETH directly from a key player in the Ethereum ecosystem.
Bruce Liu Discusses OP_CAT and Its Potential Impact on Bitcoin
In a recent discussion, Bruce Liu articulated that without OP_CAT, Bitcoin remains as “useful as a jumbo jet without wings,” suggesting that the cryptocurrency is capable of far more than its current utility allows. Liu, the founder of OPCAT_Labs, argues that the reintroduction of the OP_CAT opcode could transform Bitcoin from a primarily static asset into a form of programmable money that could compete with other layer-1 blockchains. OP_CAT is a previously disabled opcode within Bitcoin’s code that, if reactivated, would enable developers to concatenate data within scripts, unlocking new functionalities such as vaults, covenants, and decentralized exchanges. Liu emphasized that if OP_CAT were reinstated, the Bitcoin blockchain could achieve programmability comparable to that of Ethereum or Solana. “OP_CAT is not new code. It was never deleted, just commented out and disabled. We are not adding my opcode or somebody else’s. It’s Satoshi’s,” Liu stated during an interview at BTC Asia in Hong Kong.
Holesky Testnet to Be Retired Following Fusaka Upgrade
The Ethereum ecosystem is set to retire the Holesky testnet, which has served as a key staging ground for the past two years. This closure will occur two weeks after the completion of the Fusaka upgrade, after which client and infrastructure teams will discontinue support. The Fusaka upgrade aims to make Ethereum rollups more cost-effective and efficient by distributing data storage responsibilities more evenly across validators. Launched in 2023, Holesky quickly became Ethereum’s largest public testnet, allowing thousands of validators to trial upgrades before their mainnet deployment. Significant milestones, including the Dencun and Pectra upgrades that enhanced transaction efficiency and reduced costs, were initially tested on Holesky. However, issues began to surface as the network aged, particularly “inactivity leaks” that arose following the activation of Pectra in early 2025, which saw a significant number of validators going offline and creating backlogs for those attempting to exit. Consequently, Holesky evolved from a testing tool to a hindrance for developers seeking rapid feedback.
In Other News
Digital asset investment firm Galaxy Digital is transitioning its stock onto blockchain technology as the trend of equity tokenization gains momentum. The Nasdaq-listed company is collaborating with blockchain firm Superstate to offer its Class A common stock as tokens on the Solana network via Superstate’s Opening Bell platform. This initiative allows investors to hold and transfer shares on-chain while retaining the rights associated with SEC-registered equity. The tokenization of traditional assets has gained traction in the financial sector as firms explore the potential of blockchain for equities, bonds, and money-market funds. Recently, several tokenized equity products have emerged, primarily aimed at EU investors. However, some have faced scrutiny due to concerns regarding limited shareholder rights and fragmented regulations. Unlike synthetic or wrapped tokenized stocks, which operate independently of the issuer, Galaxy’s shares will be issued directly on-chain and monitored by Superstate, ensuring immediate updates to the shareholder register as tokens are transferred between verified wallets. This model seeks to blend regulatory compliance with the advantages of blockchain, such as rapid settlement times, transparency, and continuous availability.
Ondo Finance has introduced its tokenized equity platform, Ondo Global Markets, enabling non-U.S. investors to access over 100 U.S. stocks and exchange-traded funds (ETFs) on-chain. This offering, which was first announced in February, has launched on the Ethereum blockchain and is supported by securities held by U.S.-registered broker-dealers. Among the available tokenized equities are crypto token versions of major companies like Apple (AAPL), Nvidia (NVDA), and the QQQ ETF. Investors from regions including Asia-Pacific, Europe, Africa, and Latin America can mint and redeem shares around the clock during trading days while enjoying access to underlying exchange liquidity. However, this service is not available for U.S. residents. The tokens are designed for seamless movement between wallets, exchanges, and decentralized finance (DeFi) protocols. Ondo Finance has also partnered with various infrastructure providers, including BitGo, Ledger, and Chainlink, to facilitate this rollout.
Regulatory and Policy Updates
Christine Lagarde, President of the European Central Bank (ECB), has called on European Union lawmakers to enforce strict regulations and safeguards on foreign stablecoins. In a speech at the European Systemic Risk Board (ESRB) conference in Frankfurt, Lagarde emphasized that these stablecoins should adhere to the EU’s regulatory standards prior to operating within the bloc. She highlighted the risk that, during a stablecoin run, investors might favor jurisdictions with stronger protections, such as the EU, which could lead to a depletion of local reserves. “The risk of liquidity mismanagement across jurisdictions is one we have seen before. Banking groups, for example, are already required to ensure that reserves are available in the part of the group where and when they are needed,” Lagarde noted.
The U.S. government has commenced utilizing blockchains to distribute vital economic data, starting with the U.S. Department of Commerce’s release of gross domestic product (GDP) figures. This initiative has been described as a “proof of concept” for further blockchain applications in the future. “We are making America’s economic truth immutable and globally accessible like never before, cementing our role as the blockchain capital of the world,” stated Secretary of Commerce Howard Lutnick in the announcement. In a bid to remain neutral regarding blockchain preferences, the department published last week’s data across multiple blockchain platforms, including Bitcoin, Ethereum, Solana, TRON, Stellar, Avalanche, Arbitrum One, Polygon PoS, and Optimism, along with the corresponding transaction hashes. The agency also distributed the data through Chainlink and Pyth, with assistance from exchanges Coinbase, Gemini, and Kraken.
Upcoming Events
Sept. 22-28: Korea Blockchain Week, Seoul
Oct. 1-2: Token2049, Singapore
Oct. 13-15: Digital Asset Summit, London
Oct. 16-17: European Blockchain Convention, Barcelona
Nov. 17-22: Devconnect, Buenos Aires
Dec. 11-13: Solana Breakpoint, Abu Dhabi
Feb. 10-12, 2026: Consensus, Hong Kong
Mar. 30-Apr. 2: EthCC, Cannes
May 5-7, 2026: Consensus, Miami
