Tokamak Network Upgrades Its Staking Mechanism with the Launch of TON Staking V2

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.

The price of the ATOM token has surged by 7% in the past 24 hours, reaching a 7-day gain of 15%, according to CoinMarketCap data.

This surge follows the announcement of a key upgrade to the staking mechanism on Ethereum Layer-2 project Tokamak Network. The project has launched a new version of its token staking program, aiming to directly reward participants who are supporting its Layer 2 infrastructure.

The Tokamak Network is a Layer 2 project focused on building modular, composable, and scalable dApps. It’s currently developing a modular rollup hub designed to be easily integrated with existing Layer 2 chains.

The project recently announced the launch of TON Staking V2, a key upgrade to its staking mechanism.

How Does Staking V2 Change Rewards?

At the heart of this upgrade is a new model for distributing new token rewards (known as seigniorage). This marks a major shift in how rewards are allocated across the Tokamak ecosystem.

Specifically, unlike the original model, Staking V2 distributes this 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.

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.

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.

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.