T2 Network Upgrade

This page summarises the features that shipped in the T2 network upgrade.

Timeline

Node operators needed to upgrade to the T2-compatible release before the testnet activation timestamp.

Overview

T2 built on T1 and introduced the following features:

• Compound transfer policies
• Permit support for TIP-20 tokens
• A new Validator Config V2 precompile
• T2 network upgrade security improvements

Feature TIPs

Compound transfer policies

Read the technical specification.

TLDR: Extended TIP-403 policies so token issuers can set different authorization rules for senders, recipients, and mint recipients. Previously a single policy applied to both sides of a transfer.

Customer use case: Issuers of regulated or closed-loop tokens need to enforce different rules for senders vs recipients. For example: KYC required to on-ramp into a stablecoin, but anyone in the approved set can spend. Without compound policies, issuers had to apply the same restrictions to both sides, which broke real-world Commerce patterns and Tokenized Asset distribution flows.

What this enables:

• If you integrate with TIP-403 policies: new isAuthorizedSender(), isAuthorizedRecipient(), and isAuthorizedMintRecipient() functions are available. The existing isAuthorized() still works (returns senderCheck && recipientCheck).
• If you issue TIP-20 tokens: you can now create compound policies for use cases like vendor credits, directional KYC, or asymmetric compliance.

Validator Config V2

Read the technical specification.

Operator guide: Controlling validator lifecycle

TLDR: New precompile for managing consensus validators. Adds Ed25519 signature verification at registration, append-only history, and stable validator indices.

Customer use case: Before V2, node operators depended on Tempo to make any validator configuration changes. With V2, operators can self-service IP rotations, key rotations, and ownership transfers without waiting on Tempo — reducing operational dependency and enabling faster incident response.

What this enables:

• Node operators: Node operators didn't need to take action for the migration itself. Operators can now self-service IP updates, key rotation, and ownership transfers.
• Minimal nodes for validators: Validator V2 unlocks minimal nodes for validators. Previously, validators had to keep ~64,000 blocks of history to reconstruct validator sets, requiring hundreds of GB of storage. V2 removes that requirement, letting validators query the set from the latest state only.

Permit for TIP-20

Read the technical specification.

TLDR: Added EIP-2612 compatible permit() to all TIP-20 tokens, enabling gasless approvals via off-chain signatures.

Customer use case: Any Ramp or Commerce platform that sponsors gas for end users needs permit() to avoid forcing two separate transactions.

What this enables:

• Users can use permit() to combine approve + action in a single transaction.

Meta TIP: Security Improvements

Read the technical specification.