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Glossary
Consensus & Mining
Soft-Fork
Consensus & Mining
Intermediate
Updated 1/15/2025

What is

Soft-Fork?

A backward-compatible blockchain upgrade where old nodes can still validate new blocks, but may not understand all new features.

A soft fork is a type of blockchain upgrade that tightens or adds rules while remaining backward-compatible with older software. Unlike hard forks which require all nodes to upgrade, soft forks allow non-upgraded nodes to continue participating in the network - they can still validate blocks but may not understand new transaction types or features. Ergo has a sophisticated soft-fork mechanism that allows protocol improvements through miner voting without requiring contentious network splits. This enables smooth upgrades while maintaining network stability.

Key Points

  • Backward-compatible: old nodes can still validate new blocks
  • Tightens rules or adds new features within existing framework
  • Less disruptive than hard forks - no network split
  • Ergo uses miner voting for soft fork activation
  • Requires majority miner support (typically 90%+)
  • Enables gradual protocol improvements

Use Cases

1

Adding new ErgoScript operations without breaking old contracts

2

Adjusting protocol parameters (block size, fees)

3

Enabling new privacy features or optimizations

4

Fixing bugs or security issues without network split

5

Gradual protocol evolution with community consensus

Technical Details

Ergo's soft fork mechanism uses miner voting in block headers. When a protocol change is proposed, miners signal support by setting specific bits. Once threshold is reached (typically 90% over voting period), the change activates. Examples include changes to transaction validation rules, new script operations, or parameter adjustments. The eUTXO model facilitates soft forks since transaction validity is self-contained.

Related Infographics

Ergo vs Major L1s – Feature Checklist

Ergo vs Major L1s – Feature Checklist

Side-by-side matrix for Bitcoin, Ethereum, Cardano, Monero, Zcash, Solana, a typical VC chain, CBDCs and Ergo across consensus, launch, privacy, storage rent, MEV and more.

Frequently Asked Questions

Questions about Soft-Fork

Common questions about this topic

How to use Spectrum DEX on Ergo?

Connect your Nautilus wallet to Spectrum Finance, select tokens to swap, review the rate and slippage, then confirm. Spectrum uses AMM liquidity pools for instant trades. You can also provide liquidity to earn fees. All trades are atomic - they complete fully or not at all, with no front-running possible.

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What is storage rent on Ergo?

Storage rent is Ergo's solution to state bloat. Boxes (UTXOs) that remain unspent for 4+ years can have a small fee deducted by miners. This incentivizes cleaning up unused state, provides long-term miner revenue after emission ends, and keeps the blockchain sustainable. Lost coins eventually return to circulation instead of being locked forever.

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How do miners earn money on Ergo?

Ergo miners earn from three sources: block rewards (newly minted ERG), transaction fees, and storage rent. Block rewards decrease over time according to the emission schedule, but storage rent ensures long-term income even after all ERG is mined. Most miners use pools for consistent payouts.

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How do NFTs work on Ergo?

Ergo NFTs are native tokens with quantity of 1, making each unique. Unlike Ethereum where NFTs need smart contracts, Ergo NFTs are first-class protocol citizens. Mint for minimal fees (~0.001 ERG), trade on SkyHarbor marketplace, and enjoy full eUTXO security. NFTs can include rich metadata and royalties.

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