Siacoin (SC) Hard Fork: What It Means for Traders and Investors

On June 6, 2025, Siacoin activated a major hard fork known as V2, marking a transformative moment in the evolution of the Sia network. This upgrade introduces significant changes to the blockchain’s infrastructure, aimed at improving speed, scalability, and developer usability. For traders, investors, and users of the network, understanding these changes is critical—not just to safeguard assets, but to make informed decisions as Sia (SIA) positions itself for broader adoption in the decentralized storage market.

This article offers a clear breakdown of the Siacoin hard fork, focusing on its implications for SC coin holders, market participants, and developers. Rather than overwhelming readers with technical jargon or hype, it aims to provide a grounded overview of what’s changing, why it matters, and how stakeholders can respond with confidence.

Understanding the SC Coin Hard Fork

The V2 hard fork represents the most comprehensive technical overhaul in Sia’s history. It is being rolled out in two stages. The first, which began at block 526,000, introduces the new transaction protocol while still supporting the old version. The second phase, expected around July 4, will mark the point where the network begins accepting only V2 transactions. This transition ensures a smoother upgrade path and gives users time to adjust.

At its core, the fork implements a new cryptographic structure known as Utreexo, which greatly reduces the amount of data that full nodes must store. This change improves syncing speeds and lowers the barrier to entry for node operators. The fork also introduces a new renter-host protocol (RHP4), the QUIC communication protocol, and a shift to modular software components. Together, these changes aim to make the Sia network more performant, accessible, and maintainable.

Unlike some blockchain forks that introduce new tokens, V2 keeps the existing SC coin unchanged. This means there’s no need to swap or convert holdings. However, users must upgrade to compatible wallets and software to remain fully functional on the network after the transition is complete.

Key Technical Enhancements in V2

The most noticeable changes in V2 stem from its focus on modularity and performance. The integration of Utreexo is a major step forward. This feature allows full nodes to maintain only a compact summary of the blockchain’s unspent outputs rather than the entire set. As a result, syncing a node becomes significantly faster, helping decentralize the network by making participation more practical for everyday users.

The introduction of the RHP4 protocol modernizes how renters and hosts interact. This new version is optimized for speed, allowing for multiple parallel uploads and even browser-native storage access. By simplifying the process for developers and users alike, it opens the door to more fluid and intuitive applications built on Sia.

Another performance enhancement comes from switching to the QUIC protocol. This communication standard, originally developed by Google, offers lower latency and improved connection stability over traditional TCP. With this change, file transfers on Sia become faster and more reliable.

Perhaps one of the most forward-looking aspects of V2 is the reorganization of the software stack. Instead of using a monolithic client, the system is now divided into specialized modules: walletd for wallet management, renterd for file renters, and hostd for storage providers. This architectural shift not only simplifies maintenance but also encourages a richer developer ecosystem.

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What the Hard Fork Means for Stakeholders

For holders and traders of SC, the immediate impact lies in wallet compatibility and exchange support. Since the network will only recognize V2 transactions starting in early July, it is crucial to move to a V2-compatible wallet, such as walletd or SiaCentral. Using outdated clients after this date could result in transaction errors or even loss of access to funds.

Many exchanges have announced support for the fork, but not all. While some, like Binance and Kraken, are expected to update their systems in time, others have not yet confirmed compatibility. Investors who keep SC on smaller or less responsive platforms may face difficulties withdrawing or using their coins post-transition. To avoid such issues, storing SC in a self-custodied V2 wallet is currently the safest option.

For node operators, especially storage hosts and renters, the upgrade requires more technical preparation. Hosts must switch to the new hostd software to continue earning income from storage contracts, while renters should move to renterd to take advantage of RHP4’s faster performance. The modular design also allows for easier customization, giving users more control over how they interact with the network.

Miners will see relatively little disruption, as the block header format remains compatible with existing setups. However, mining pools and back-end services must still update their infrastructure to support V2 transactions and avoid orphaned blocks.

Market Implications for Traders and Investors

Network upgrades often generate short-term speculation, and the V2 hard fork is no exception. Leading up to the fork, Siacoin saw increased trading volume and positive sentiment as investors anticipated improved functionality. However, not all metrics pointed to immediate growth. Some recent reports have shown a decline in network revenue and usage, suggesting that while the technical upgrade is promising, its impact will depend on real-world adoption.

From a trading perspective, the fork creates both opportunities and risks. On the upside, improved network performance and developer tooling could support broader adoption and long-term value appreciation. In particular, the ability to use SC for browser-native file uploads and future support for atomic swaps could enhance SC’s utility and appeal.

On the risk side, any delay in exchange support or wallet upgrades could temporarily restrict liquidity. As with any major update, there is also a chance of software bugs or unforeseen conflicts, although the Sia Foundation has taken a cautious approach by spreading the fork across two stages.

Investors should take this period to reassess their holdings, ensure their assets are secure, and monitor the network for signs of sustained growth. Factors such as increased host participation, active addresses, and storage demand will be important indicators of success in the months following the fork.

How to Prepare for the Hard Fork

The most important action for users is to upgrade their wallets. Wallets that have not transitioned to V2-compatible clients by early July will be unable to send or receive transactions on the updated chain. Fortunately, the new walletd client has been designed with user experience in mind and supports the widely adopted BIP39 seed format.

Exchange users should double-check whether their platform supports the V2 fork. If support is unclear or unconfirmed, moving SC to a personal wallet before July is a prudent step. This ensures that assets remain accessible and avoids the risk of having funds stuck in unsupported infrastructure.

For developers and node operators, this is a prime opportunity to engage with the updated network tools. The modular architecture allows for easier integration of third-party services and custom solutions. Those hosting storage nodes will benefit from higher performance and simplified contract handling, while renters will find the new interface more responsive and easier to manage.

This transition is also a moment for the broader Sia community to align on best practices. As with any large-scale change, collaboration and communication will be essential to ensure a smooth and secure migration.

Conclusion

The V2 hard fork is a milestone in the evolution of Siacoin. With its focus on performance, modularity, and accessibility, it positions the Sia network for growth in a competitive decentralized storage landscape. For traders and investors, the most immediate concern is compatibility—ensuring wallets and exchange accounts are up to date. Beyond that, the fork presents a long-term opportunity to reimagine how SC is used, traded, and developed.

As the July cutoff approaches, preparation is key. By understanding the changes introduced in V2 and taking the right steps early, users can navigate the transition smoothly and take advantage of what this upgrade has to offer. While the fork brings no new coins or drastic tokenomics changes, its technical foundations could lead to significant developments in the months and years ahead.

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FAQ

Will I lose my SC tokens during the fork?
No. Your SC coins remain valid. However, to continue using them, you must ensure your wallet is upgraded to a V2-compatible client.

Should I move SC off exchanges?
If your exchange has not explicitly stated it supports the V2 upgrade, it’s safer to move your SC to a self-custodied wallet like walletd or SiaCentral before the July deadline.

Does mining SC change after the fork?
No hardware changes are required. Mining pools and software should update to remain compatible, but existing mining rigs can continue operating normally.

Will SC price go up after the fork?
Price action is influenced by many factors. While technical improvements may support long-term growth, immediate price changes are speculative and depend on user adoption and broader market sentiment.

What features will come after V2?
Future developments include mobile client support, atomic swaps, and additional performance optimizations. V2 lays the foundation for these and other innovations expected later in 2025.