The Protocol: Ethereum Developers Target December For Fusaka Hard Fork

What Happened

Plasma to Launch Mainnet Beta Blockchain for Stablecoins

FUSAKA COMING THIS DECEMBER: Ethereum core developers have confirmed a tentative roadmap for the network’s next major upgrade, Fusaka, during an All Core Developers Consensus (ACDC) call. The upgrade, designed to further scale the blockchain, is now scheduled for early December, with follow-up changes aimed at more than doubling blob capacity in the weeks after. Before the Fusaka upgrade reaches Ethereum’s mainnet, developers will push the code through three public test networks in October. If those tests proceed smoothly, the mainnet activation is targeted for Dec. 3. Developers noted that exact epoch numbers and timing will be confirmed in the coming days. While Fusaka itself won’t immediately change blob parameters, the call outlined a phased approach to scaling blob availability through so-called Blob Parameter Only (BPO) forks. One week after Fusaka BPO-1 will raise the blog target/max from 6/9 to 10/15, then one week later BPO-2 will push the limit to 14/21. These incremental changes are based on performance observed on the Fusaka Devnet-5 and are intended to safely expand capacity without requiring client-side software updates. Blobs, introduced in March’s Dencun upgrade, allow Ethereum to store large amounts of rollup transaction data more efficiently, reducing costs for users of layer-2 scaling networks. — Oliver Knight Read more.

PLASMA BLOCKCHAIN FOR STABLECOINS COMING: Plasma, a new blockchain built specifically for stablecoins, is set to flip the switch on its long-awaited mainnet beta, introducing the chain and its native token, XPL, on Sept. 25. According to a blog post from the team, the network will debut with more than $2 billion in stablecoin liquidity from over a hundred partners on day one — an aggressive attempt to position Plasma not as just another general-purpose chain, but as the backbone for stablecoin transfers. That won’t be an easy feat. Ethereum and Solana already dominate stablecoin volumes, while newer chains continue to optimize for similar flows. Plasma’s bet is that its architecture, dubbed PlasmaBFT, will give it an edge. The system is designed for fast, composable stablecoin transactions the team said, and from launch, users will be able to move USDT with zero fees through Plasma’s dashboard — a feature the team hopes will stand out in a crowded DeFi landscape.Token distribution is also aimed at broad accessibility. Prior to launch, 10% of XPL was sold in a public offering. At launch, 25 million tokens will be allocated to the community, with another 2.5 million reserved for members of the so-called Stablecoin Collective.— Margaux Nijkerk Read more.

MIDAS AND INTEROP LAVS UNVEIL NEW LIQUID STAKING TOKEN: Real-world assets (RWA) focused project Midas and Interop Labs unveiled mXRP, an attempt to channel dormant XRP supply into yield-bearing structures the could deliver returns as high as 8%. Announced at XRPL Seoul 2025 on Monday and pitched as the first liquid-staking product tied directly to the XRP ecosystem, the product is minted on XRPL’s EVM through audited contracts. XRP is bridged in and wrapped under Midas’ tokenized certificate framework. MXRP can be used as a structured vehicle that users can slot into existing decentralized finance (DeFi) infrastructure, with early strategies including market-making and liquidity provisioning. Targeted net returns are set in the 6%–8% range, with outcomes fluctuating depending on underlying strategy performance.— Shaurya Malwa Read more.

Bitcoin's (BTC) break below key support has prompted a flurry of 'buy the dip' calls on social media. However, liquidity trends suggest a potential for a deeper decline. BTC has dropped over 3% to $111,590 this week, piercing the widely-tracked 50- and 100-day simple moving averages (SMA). Both indicators have lost their upward momentum for the first time since April, now flatlining to signal caution for bulls. Meanwhile, mentions of "buy the dip" on social media have surged to their highest level in nearly a month, a telltale sign of bullish sentiment among retail investors, according to data tracking platform Santiment. The platform tracks "buy the dip" mentions using its social trends indicator, which analyses the volume of relevant keywords and phrases across Reddit, Telegram and X (formerly Twitter). A spike in these mentions is considered a contrarian signal by Santiment, meaning the ongoing price pullback in BTC could deepen. — Omkar Godbole Read more.

The U.S. Commodity Futures Trading Commission is starting an initiative to allow stablecoins as tokenized collateral to satisfy margin needs in the vast derivatives market, inviting input from the industry on how to bring such a policy online. In the latest move toward crypto inclusion in the U.S. financial sector, the acting chief of the CFTC, Caroline Pham, continues to advance policy in the absence of President Donald Trump's current nominee to be the chairman, former Commissioner Brian Quintenz. As the confirmation process for Quintenz remains mired in delays and some open conflict, Pham has been regularly announcing initiatives as part of a "crypto sprint" and working with Securities and Exchange Commission Chairman Paul Atkins. "For years I have said that collateral management is the ‘killer app’ for stablecoins in markets," Pham said in a statement. "I’m excited to announce the launch of this initiative to work closely with stakeholders to enable the use of tokenized collateral including stablecoins." Pham had been pushing since last year for a so-called regulatory sandbox for tokenization, when she served as a commissioner during the previous administration, and when she took over as acting chairman, she announced the pursuit of a pilot program on stablecoin-backed tokenization. — Jesse Hamilton Read more.

Market Context

Internet Computer Bets Big on AI as Crypto Markets Play Catch-Up

ICP BETS BIG ON AI TECH STACK: The ICP, a blockchain project that has sought to differentiate itself from rivals, is doubling down on its pitch as the go-to network for on-chain artificial intelligence (AI). This could be the beginning of a new tech stack - one in which AI, not humans, becomes the primary developer of applications, according to Dominic Williams, founder of Internet Computer developer Dfinity. Williams argued that while crypto prices remain driven largely by market mechanics - treasury operations, liquidity games and speculation - the underlying technology will eventually force a reckoning in an interview with CoinDesk. “In the long run, markets begin to reflect realities on the ground,” he said. “But as yet you’re not seeing what’s happening with Internet Computer reflected in ICP’s price.” The Internet Computer first demonstrated neural networks running as smart contracts in April last year, starting with image classification and later facial recognition, Williams said. While those were relatively simple models compared to large language models - the kind that power AI tools like ChatGPT and Gemini - they were proof of concept: that AI can run natively on a blockchain. No other network has achieved this, Williams pointed out, despite the chatter about “decentralized AI.” Where others rely on off-chain infrastructure like Amazon Web Services, ICP seeks to integrate the full AI development and execution stack on-chain. Williams describes this as “a self-writing internet” - a system where users describe what they want, and an AI delivers it as a working application, hosted directly on Internet Computer. The bigger idea, Williams said, is that AI itself will replace much of today’s developer workflow. – Jamie Crawley Read more.

Key metric tied to BlackRock's Nasdaq-listed spot BTC exchange-traded fund, IBIT, has been flashing warning signs for two straight months. IBIT's one-year put-call skew, a measure of market sentiment or pessimism, flipped positive on July 25 and has remained comfortably above zero since then, according to data source Market Chameleon. That's two straight months of bearish put bias. In other words, traders have consistently favored protective puts over bullish calls for two months, signaling a sustained cautious or risk-averse outlook. A similar put option bias was observed from March 8 to April 21 this year, a period marked by sharp declines in both the spot price and IBIT, primarily driven by the trade war-induced weakness on Wall Street. — Omkar Godbole Read more.

Why It Matters

The U.S. Treasury Department is pushing forward with a narrow comment window on its preliminary, formal efforts to solidify the recently established stablecoin law into a set of regulations. This arm of President Donald Trump's administration has opened what's known as an "advance notice of proposed rulemaking", which is an early step taken to gather information that will be used to put together an actual proposal. In this case, the government is asking for data on building out its requirements under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS) Act, including prohibitions on issuers, sanctions obligations, anti-money laundering compliance, the balance between state and federal oversight, tax matters and any further need from the industry for clarity. A one-month period is now open in which the public — and crypto businesses — can weigh in on these complex issues before it closes on October 20. The notice posted dozens of questions, such as, "Is additional clarity necessary regarding the extent to which reserve assets are required to, or should, be held in custody?" and "Are there foreign payment stablecoin regulatory or supervisory regimes, or regimes in development, that may be comparable to the regime established under the GENIUS Act?" — Jesse Hamilton Read more.

May 5-7, 2026: Consensus, Miami

Details

Welcome to The Protocol, CoinDesk's weekly wrap of the most important stories in cryptocurrency tech development. I’m Margaux Nijkerk, a reporter at CoinDesk.

In this issue:

Ethereum Developers Target December for Fusaka Hard For

XRP Holders Can Now Earn Up to 8% Through New Liquid Staking Token

Network News

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Regulatory and Policy

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