v11.1.0 Protocol Changes Discussion

[adamkrellenstein]

We've got a pull request for Counterparty Core v11.1.0: CounterpartyXCP/counterparty-core#3292

This is the place to discuss + finalize the scope + timeline for the v11.1.0 release. (If you want to talk about the implementation itself, just comment in the PR itself.) The PR includes two major, user-facing upgrades to the Counterparty protocol, in addition to a ton of bugfixes (largely discovered through rigorous auditing with LLMs). See the list of Counterparty Core milestones for a rough idea of what's coming next. https://github.com/CounterpartyXCP/counterparty-core/milestones

Protocol Changes

• AMM liquidity pools
• Indefinite DEX orders
• Better Ordinals inscription metadata support

Non—Protocol Changes

• More inscription file types. Audio formats like audio/ogg;codecs=opus now work, plus a few other previously-rejected types.
• Ordinals-style metadata in taproot inscriptions.
• No more single point of failure on Blockstream. Multi-Electrs failover — nodes can use multiple backends and fail over automatically. Defaults now include both Blockstream and mempool.space.
• A long list of bugfixes and hardening in the parser, indexer, and API. Full list in the release notes.

wontfix

• Add cancel-all mode to cancel message (type 70) counterparty-core#3282

Postponed

• Remove ARC4 encoding counterparty-core#1814
• Trustless Pool Creation with Locked Liquidity for Fairminters counterparty-core#3285

Activation plan and timing

• Mainnet activation block: 952500 (approximately mid-to-late July 2026)
• Testnet3 activation: 4961000
• Testnet4 activation: 136000

[davestaxcp]

Love it!

Did not hear anyone disapprove in the last community spaces:
https://x.com/davesta_xcp/status/2053545092338831603

• I think Tatiana, Mr.BitcoinBeast and other ordinals enjoyers are going to appreciate the metadata changes alot

• Everyone seems excited about Dan's AMM liquidity pools from I can see (plus no open contentions in TG, Twitter, community spaces or github)

• Indefinite DEX orders is extremely wanted and exciting too

• Happy to see the electrs discussion solved as well!

[Cornholio-the-Great]

I was just checking the timing of this, and it's noted as mid-to-late July 2026, but we're currently at block height 951951. That is 549 blocks away, ~5490 minutes
91.5 hours
3.8125 days

So, around June 4th, 2026

[adamkrellenstein]

Yes, you're right! We did the math wrong!

[MertEnesYurtseven]

Exciting to see AMM liquidity pools coming to Counterparty. The decision to exclude BTC pairs (only XCP/PEPECASH and other non-BTC pairs) makes sense given BTC divisibility constraints on the protocol.

One dimension worth thinking about: how LPs evaluate their pool performance beyond just fees earned. In Uniswap v2-style pools, LPs face LVR (loss-versus-rebalancing) from arbitrage flow and toxic flow directionality that can erode fee income. This is not captured by just looking at the fee rate (0.5% / 1%).

I have been simulating these dynamics in a thermodynamic AMM framework — it uses a 15-dimensional state vector (including LVR, VPIN/toxicity, inventory skew, coherence) governed by SDEs to model how LP health evolves under different market regimes. Includes Monte Carlo validation across 5K parallel trajectories.

https://github.com/MertEnesYurtseven/thermodynamic-amm

Might be useful for stress-testing the Counterparty pool economics before mainnet activation — especially around how the fixed fee tiers hold up under directional flow, volatility clustering, and informed trading.