- Ethereum L2 project Tokamak Network launched a major staking upgrade, dubbed ‘TON Staking V2’.
- The new system rewards Layer 2 sequencers with token seigniorage based on L2 TVL.
- Stakers can now withdraw tokens instantly to Layer 2, skipping the Layer 1 lockup period.
Ethereum Layer-2 project Tokamak Network has launched a key upgrade to its staking mechanism with the launch of TON Staking V2, designed to directly reward participants supporting its Layer 2 infrastructure.
The announcement sent the price of the TOKAMAK token up 4.57%; it’s now trading at $1.22, bringing its 7-day gain to 15% , according to CoinMarketCap data.
How Does Staking V2 Change Rewards?
At the core of this upgrade is a new staking model. It marks a major shift in how rewards are distributed across the Tokamak ecosystem.
Specifically, unlike the original model, Staking V2 distributes new token rewards (known as seigniorage) directly to Layer 2 sequencers—the key operators who run and scale the network’s Layer 2 solutions.
These newly issued native tokens will now be automatically distributed based on the Total Value Locked (TVL) within each Layer 2 chain, measured via Layer 1 bridge contracts.
Related: Which Cryptos Are Whales Buying the Most Right Now (April 2025 Data)
What Are the Key Features of the New System?
As per the official blog post , a portion of newly minted TON (seigniorage) will now be distributed based on each Layer 2’s TVL relative to the network’s total token supply.
For existing participants, the staking contract upgrade integrates this new logic seamlessly. While their seigniorage rewards will now be slightly adjusted based on Layer 2 metrics, they remain a key part of the system.
What Else Changes for Stakers and the DAO?
Further, in a user-centric improvement, TON stakers can now instantly withdraw their staked tokens to Layer 2 chains, bypassing the typical 13-day lockup required for L1 withdrawals.
Related: Massive Dip in JTO, TRUMP, TON CO—Buy the Fear or Run for Cover?
Tokamak’s DAO has the authority to pause or resume seigniorage distribution to specific Layer 2s based on alignment with community goals. This ensures transparency and strategic resource allocation.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
