Deep Dive
1. v2.0.3 Mainnet Upgrade (19 July 2025)
Overview: This upgrade finalized Kaia’s v2.0 series, focusing on user experience and protocol alignment with Ethereum standards.
Key additions include Consensus Liquidity (CL), allowing users to stake tokens while providing DEX liquidity for dual rewards (staking + LP). The Gas Abstraction (GA) feature lets users pay transaction fees in USDT or BORA, bypassing KAIA holdings. The upgrade also fully supports Ethereum’s Prague hardfork, including EIP-7702 (smart contract wallets) and EIP-2537 (cheaper ZK-proof operations).
What this means: This is bullish for KAIA because it lowers entry barriers for users (via stablecoin fees), boosts network security through CL, and aligns Kaia with Ethereum’s developer ecosystem. (Source)
2. Gas Abstraction Launch (13 July 2025)
Overview: Kaia rolled out trustless gas payments in stablecoins, a first for Asian L1 blockchains.
The protocol now bundles token swaps and transaction execution atomically, removing reliance on centralized relayers. Testnet data showed a 23% reduction in failed transactions during high congestion.
What this means: This is neutral for KAIA short-term (reduced direct demand for KAIA gas) but bullish long-term, as it attracts developers building fee-agnostic dApps and users seeking predictable costs. (Source)
3. Ethereum EIP-7702 Integration (19 July 2025)
Overview: Kaia adopted Ethereum’s account abstraction standard, enabling smart contracts to function as wallets.
Developers can now create customizable transaction flows (e.g., subscription-based fee models). The upgrade also integrated BLS12-381 precompiles, reducing ZK-proof generation costs by ~40% based on testnet benchmarks.
What this means: This is bullish for KAIA because it simplifies Web3 onboarding (via self-custodial smart wallets) and positions Kaia as a privacy-friendly chain for ZK-based dApps. (Source)
Conclusion
Kaia’s codebase updates prioritize real-world usability (stablecoin gas), Ethereum synergy (Prague compatibility), and scalability (CL/GA). Together, they strengthen Kaia’s position as Asia’s gateway for EVM-compatible innovation.
Could gas abstraction’s stablecoin flexibility drive mass adoption of Kaia-based payment dApps in 2026?