Kaspa Testnet 12 Covenants Go Live for Smart Contract Testing

January 6, 2026. Kaspa Testnet 12 is now live as the first public Kaspa network running with covenants fully enabled. The testnet allows developers and community members to experiment with advanced scripting features that define how coins can be spent.

Key Takeaways

Kaspa launches Testnet 12 with covenants enabled for public developer testing.
Covenants introduce programmable spending conditions directly on Kaspa.
Developers can experiment with vaults, escrow systems, and layered protocols.
The milestone advances Kaspa toward native smart contract functionality.

From High Throughput PoW to Programmable Spending

Kaspa launched its mainnet in 2022 using the GHOSTDAG blockDAG architecture to achieve high throughput while maintaining Proof of Work security. The network scaled rapidly, prioritizing decentralization, fair emission, and low confirmation times.

Covenants emerged in 2025 as Kaspa’s approach to smart contract style functionality. Inspired by Bitcoin research, they enable constrained spending conditions such as vaults, escrow, and inheritance logic while preserving simplicity and security.

Price Impact of Kaspa Testnet 12 Launch on $KAS

January 6, 2026. The launch of Kaspa Testnet 12, which enables covenants for advanced scripting, has generated developer excitement but produced minimal short term price movement for $KAS. Current $KAS price ranges from $0.04 to $0.05 USD, averaging around $0.046 across major exchanges, with 24 hour changes between -1% and +2%. Trading volume remains moderate at roughly $30 to $50 million daily, reflecting technical interest in the covenant milestone without speculative frenzy.

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Kaspa ($KAS) Key Updates in 2025

January 6, 2026. Kaspa made steady progress in 2025, focusing on scaling its GHOSTDAG based Proof of Work architecture while laying foundations for native smart contract functionality. The Crescendo hard fork increased block production to 10 blocks per second, significantly boosting throughput and transaction capacity without sacrificing decentralization.

Development momentum continued through Kasplex zkEVM progress, multiple covenant focused testnets, and early DAGKnight research for faster finality. Ecosystem growth included new social applications, rising node participation, and active community tooling, positioning Kaspa for a programmable PoW expansion phase in 2026.

Chain
Scripting Model
Covenants
Smart Contract Type
Security Focus

      Kaspa (Testnet 12)
    
      Native covenants
    
      Full (2026)
    
      Restricted spending
    
      Simplicity, PoW
    
      Bitcoin
    
      OP codes + Taproot
    
      Limited (CheckTemplateVerify)
    
      Basic vaults
    
      Maximal minimalism
    
      Ethereum
    
      EVM
    
      None native
    
      Turing-complete
    
      Flexibility
    
      Ergo
    
      Sigma protocols

Educational Content: Covenants in Blockchain Scripting

Kaspa Testnet 12’s covenants launch teaches programmable spending conditions in UTXO based chains. Students can explore how covenants restrict coin usage, such as vaults, escrow, and time locks, without full Turing complete contracts, improving security and simplicity compared with Ethereum’s EVM. Compare Bitcoin’s limited OP codes with Kaspa’s native covenant design for layered protocols. Discuss benefits like inheritance and DeFi primitives, alongside trade offs between flexibility and auditability. This illustrates how Proof of Work chains evolve toward smart functionality while preserving decentralization.

Frequently Asked Questions

What is Kaspa Testnet 12?

Kaspa Testnet 12 is a public testing network where covenants are fully enabled, allowing developers to experiment with advanced scripting and programmable spending conditions.

What are covenants in Kaspa?

Covenants are spending rules that restrict how coins can be used, enabling vaults, escrow, inheritance setups, and layered protocols without full smart contracts.

Why are covenants important for Kaspa?

They add native programmability while preserving Proof of Work security, low fees, and high throughput, expanding Kaspa’s use cases beyond simple payments.

Who can participate in Testnet 12?

Anyone can participate, including developers, node operators, and community members, using published setup guides, testnet nodes, and faucet resources.

When could covenants reach Kaspa mainnet?

If testing and audits proceed smoothly, covenants are expected to be proposed for mainnet activation sometime in 2026.

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