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Ecosystem Updates

PowPegComposition Change

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Announcing The Upcoming PowPeg Composition Change

The Rootstock network will undergo a PowPeg change at block 8,147,322, expected to occur on Tuesday, October 28, 2025. This activation will also enable the Segwit-supported PowPeg, introduced as part of the recently completed Reed network upgrade, which reduces peg-out fees, enhances efficiency, and improves bridge scalability.

Since the Bitcoin deposit address will change, it is strongly recommended that users verify the address before initiating any BTC to rBTC conversions. No further action is required from users.

What is happening?

As part of the plan to upgrade PowPeg members to the latest version of the powHSM firmware, the platform signatories have completed an on-chain voting process to modify the composition of the current PowPeg.

The PowPeg composition will remain unchanged, with no new members added or existing members removed. To enhance network security, one pegnatory, pNetwork, has upgraded its Hardware Security Module (HSM) setup to the latest public version of the powHSM firmware. This upgrade brings improved security, enhanced performance, and better utilization of the device screens.

This upgrade required installing the new firmware on the upgraded HSM devices, resulting in the generation of new private/public key pairs for this pegnatory. As a consequence, a PowPeg composition change process was required. Once the change takes effect, the new attestation information will be publicly available, allowing anyone to verify that the pegnatories’ PowPeg keys are securely stored on authentic hardware devices running a known firmware version.

Due to the consensus-enforced delay built into the Rootstock protocol, the new composition will become effective at block 8,147,322. Based on the current state of the network, this is expected to occur on Tuesday, October 28, 2025.

In addition to the composition change, this activation will also enable the Segwit-supported PowPeg, introduced as part of the recently activated Reed network upgrade. Segwit (Segregated Witness) compatibility represents a major step forward in the evolution of the Rootstock-Bitcoin bridge. By adopting Segwit, the PowPeg can significantly reduce peg-out transaction sizes and fees—by up to 60%, while also enabling the expansion of the PowPeg’s multisignature set from 9 to 20 members, paving the way for greater decentralization and resilience of the bridge.

Rootstock users and node operators are encouraged to follow and verify the migration process, which is automatic and commanded by the Bridge smart contract. They are not required to take any additional actions.

It is important to note that the Rootstock PowPeg Bitcoin address used to convert BTC to rBTC will change once the new PowPeg is activated. To prevent the possibility of losing funds, it is recommended that all users who manually perform peg-ins, or use their own tools and libraries, check the deposit address before sending funds as outlined in this guide.

The PowPeg Web App will automatically adjust its operation to use the appropriate Bitcoin deposit address for BTC to rBTC transactions.

Closing Note

This change marks another important milestone in strengthening Rootstock’s Bitcoin-native bridge. By introducing Segwit support and advancing HSM security, the network continues to enhance decentralization, efficiency, and resilience, reinforcing Rootstock’s long-term vision of building the most secure and scalable Bitcoin Layer 2.

 

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