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 (TIP-1015)
• Permit support for TIP-20 tokens (TIP-1004)
• A new Validator Config V2 precompile (TIP-1017)
• Security improvements (TIP-1036)

Feature TIPs

TIP-1015: Compound Transfer Policies

Spec: TIP-1015

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.

TIP-1017: Validator Config V2

Spec: TIP-1017

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.

TIP-1004: Permit for TIP-20

Spec: TIP-1004

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

TIP-1036: T2 Hardfork Improvements