Syscoin Ecosystem Update: August 14, 2025

zkSYS Testnet, AI Agents, Pali V4 & Governance in Motion

The Syscoin Biweekly Update is back with another dose of on-chain development and real-world progress.

These past two weeks brought major updates from across the SYS Labs ecosystem. From the introduction of SuperDapp’s first AI Agent we previously mentioned to major backend upgrades and new governance proposals, the momentum is building across the board.

Here’s what you need to know:

Highlights

zkSYS Nears Public Testnet

Development on zkSYS, the first Edgechain in the Syscoin ecosystem, continues to accelerate. The team is finalizing the necessary configuration for zkSync to use Syscoin NEVM as its settlement layer rather than Ethereum.

  • A dual deployment strategy is in motion:
    • V28 will be released as a public testnet in mid-August.
    • V29 is being developed concurrently to prepare for mainnet readiness.
  • Configuration also includes integration of the Bitcoin DA client, enabling Bitcoin-powered modularity.
     

zkSYS isn’t just another rollup. It’s the flagship template for all future Edgechains, defining what’s possible in Bitcoin-native, modular Web3.

Ecosystem Updates

Syshub

Syshub has entered its second QA round after fixing major issues from its previous testing phase. Progress continues as the application moves toward external audit readiness.

Syscoin Developer & Infrastructure Updates

Over the past two weeks, key backend improvements were finalized:

  • ✅ Completed upgrade of the Rollux testnet explorer
  • ✅ Successfully deployed Rollux testnet peering node
  • 🧪 Sentrynode bot remains in testing
  • 🔁 Continued upgrades to the Legacy Bridge for compatibility with Syscoin 5

These updates reflect a strong commitment to scalability and performance.

Luxy

The final phase of Luxy’s infrastructure migration is underway.

  • While the core systems have already been migrated, the team is now completing final testing, including notification services.
  • Once finished, the migration is expected to bring significant cost efficiency and stability.

Lunos (formerly Uno Re)

It’s been a productive period for Lunos on multiple fronts:

Technical

  • Completed frontend cleanup and library upgrades
  • Standardized UI components
  • Fixed staking/reward issues in SSIP and veUNO pools
  • Continued development of the AI Agent module for flight delay claims
  • Kicked off work on a new Asset Manager

Governance

  • Submitted a new governance proposal: Lunos Insurance Module – Bridge Risk Design
  • Internally voted to remove liquidity from underperforming LPs

Security

  • Onboarded CredShields as the new security partner via the Lunos Security Hub

🛠️ Note: Pali Wallet was temporarily removed as a login option due to pool errors. A fix is in progress.

SuperDapp

As previously mentioned, the team successfully launched its first AI Agent, developed in partnership with ChainGPT.

  • Named CryptoNewsAI, it is now live and free for all users to integrate into their Super Groups.
  • The team is also on track with the AI Agents Framework as outlined in the June governance proposal.
  • A new patch focused on performance and stability is expected in the coming week.

 

Pali Wallet

The long-anticipated V4 of Pali Wallet is now undergoing internal testing by SYS Labs developers.

  • This version is a total refactor, focused on improved UX, stronger security, faster load times, and full support for both UTXO and EVM networks.
  • Expect hardware wallet integration, native support for SPTs, and better DApp compatibility.

In addition, a Pali Test Dapp v1 has been released on GitHub to assist with testing and debugging.

🔗 github.com/SYS-Labs/pali-test-dapp

Governance Snapshot

A new Syscoin Governance Report has been published, covering the SMT proposal from May to July 2025. This report represents a way we maintain transparency and accountability, and we encourage all members of the Syscoin community to read it at their own leisure.

Highlights include:

  • Over 800K impressions across social platforms
  • Successful presence at Bitcoin 2025 & Davos Web3
  • Launch progress for Pali V4, zkSYS, Syshub, and Rollux upgrades
  • Ongoing Discord community-building strategies
  • Backend progress on tooling, explorers, and infrastructure

This report was shared in the #smt-proposals channel under the Governance tab on the Syscoin Discord.

Looking Ahead

As zkSYS prepares for its public testnet debut and core products like Pali and Syshub advance toward major milestones, the ecosystem continues to fire on all cylinders.

Every two weeks, these updates will keep you in the loop as we deliver on the promise of a Bitcoin-powered, modular Web3.

Until next time.

Forge the Future of Bitcoin‑Powered Web3

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Aug 14, 2025 by Syscoin Foundation