This breakdown comes from the latest video on the CaptainAltcoin YouTube channel. We have already covered Kaspa’s upcoming upgrade on the site, but the video dives deeper into what is actually changing under the hood. For anyone watching the slow KAS price action and wondering what is really going on, this explanation helps connect the dots.
Mark the date: May 5, 2026.
On that day, Kaspa is scheduled to undergo a covenant-centric hardfork that could fundamentally expand what the network can do. At the moment, KAS is trading around the 3–4 cent range, with a market cap under $1 billion. Yet the scope of this upgrade is far bigger than what that valuation implies.
What you'll learn 👉
From Fast Payments to Full Smart Contract Platform
Until now, Kaspa’s identity has been simple and clear. It is an ultra-fast proof-of-work network powered by a blockDAG architecture, capable of processing around 10 blocks per second. It positioned itself as efficient digital money with strong decentralization.
After May 5, that description will no longer be enough.
The hardfork is designed to inject programmability directly into Kaspa’s Layer 1. That means it will not rely on external Layer 2 solutions to enable advanced functionality. Instead, smart contract-like capabilities will live at the base layer of the protocol.
This is a major shift. It turns Kaspa from a pure payment network into a programmable ecosystem capable of hosting tokens, DeFi protocols, and more complex financial logic.
Native Assets: The Ecosystem Unlock
One of the core features coming with the hardfork is support for native assets.
For the first time, developers will be able to issue their own tokens directly on Kaspa’s Layer 1. Think in terms of KRC20-style tokens, similar in concept to Ethereum’s ERC20 standard.
This is foundational. Without native tokens, you cannot build DeFi. You cannot create a proper NFT economy. You cannot bootstrap a meaningful developer ecosystem. Native assets are the base layer for everything from memecoins to lending platforms.
Once this functionality goes live, new projects will be able to build their entire stack on Kaspa itself. That removes friction and lowers the barrier to entry for builders who want speed, proof-of-work security, and now programmability.
Covenants++: Programmable Money Without the Overhead
The second major feature is called Covenants++.
Covenants are rules that define how a transaction can be spent. Kaspa’s new implementation expands those rules significantly, enabling advanced transaction conditions.
This allows for features such as on-chain escrows that release funds only when specific criteria are met, vault-style security setups requiring multiple signatures, and structured transaction flows that mimic many smart contract use cases.
The key difference is architectural. Instead of copying Ethereum’s account-based model, Kaspa extends its UTXO model with more expressive controls. That creates a different path toward programmability, one that some argue could be leaner and more secure.
It opens the door for DeFi-style applications without transforming the entire network into a heavy virtual machine environment.
Zero-Knowledge Proofs at the Base Layer
The third major addition is zero-knowledge proof verification.
The hardfork integrates support for Groth16, a widely used ZK-proof system. This allows applications to verify information without exposing the underlying data.
That has powerful implications.
It enables privacy-oriented tools, secure verification systems, and potentially trust-minimized bridging between blockchains. Many high-profile networks are still working to integrate ZK functionality at scale. Kaspa is embedding support directly into its base layer.
That combination of proof-of-work, high throughput, and ZK support is rare in today’s crypto sector.
Read also: Kaspa Is About to Break Blockchain Physics: 100 BPS Could Change Crypto Forever
A Direct Challenge to the “Trade-Off” Narrative
For years, the prevailing view in crypto has been that speed and programmability require proof-of-stake. The argument has been that proof-of-work networks must sacrifice flexibility to maintain security and decentralization.
Kaspa is attempting to break that assumption.
The network plans to retain proof-of-work consensus and its high block production rate, while layering in token issuance, advanced transaction logic, and ZK-proof verification.
If it works as intended, Kaspa could offer decentralization, speed, and programmability in one stack.
On top of that, the team is introducing SilverScript, a high-level programming language built specifically for Kaspa covenants. Accessibility matters. Ethereum’s growth accelerated because Solidity made development approachable. Solana’s ecosystem expanded rapidly once Rust developers joined.
SilverScript aims to lower the learning curve and make building on Kaspa more practical from day one.
Why the Market Hasn’t Reacted
Despite all of this, KAS price action remains muted. The token trades in the low-cent range, and the broader market does not appear to be pricing in the scope of the transformation.
Testnet 12, where these features are being trialed, is already live. The roadmap is public. The hardfork date is known.
Historically, major upgrades such as Ethereum’s Merge or Cardano’s Alonzo hardfork saw months of appreciation leading up to launch. Markets tend to price in new functionality as catalysts approach.
Kaspa sits in a different position. With a sub-billion-dollar valuation and a hardfork less than three months away, the asymmetry is clear. If adoption follows the upgrade, a re-rating is possible. If execution falters or developer traction remains weak, the market may continue to ignore it.
There are risks. Hardforks can be delayed. Bugs can surface. Ecosystem growth is never guaranteed. But the scale of what is planned for May 5 makes this more than a routine update.
It is a structural evolution.
For investors frustrated by slow KAS price action, the key takeaway from the CaptainAltcoin video is simple. Beneath the surface, the protocol is preparing for a major expansion in capability.
Read also: Why Is Kaspa Trending Everywhere Despite KAS Price Being Stuck Below $0.04?
Subscribe to our YouTube channel for daily crypto updates, market insights, and expert analysis.
