Bitcoin SV Upgrades Fungible Tokens with BRC-162 Standard

The Bitcoin SV (BSV) network has received a significant upgrade with the introduction of BRC-162, a new standard for fungible tokens. This upgrade, merged on October 2, 2026, aims to enhance the utility and efficiency of BSV tokens by adopting a compact binary format. Unlike previous upgrades, BRC-162 preserves existing BSV-21 tokens, ensuring no migration is required. The new format allows Bitcoin Script to read token data directly, potentially reducing script size by around 60%. This streamlines token transactions and makes it easier for wallets and contracts to process token outputs.

The upgrade unifies the BSV-21 token model with the encoding introduced by BRC-92, eliminating the need to support two separate formats. The binary encoding simplifies the token data structure, making it more efficient for Bitcoin Script to handle. The token ID remains fixed, and the supply models and balance economics stay unchanged. The optional metadata payload in the new format ensures that its presence or absence does not affect token validity or balance.

Despite the upgrade, existing BSV-21 tokens continue to function as before. The transition to BRC-162 depends on wallet and indexer support, which is still pending. The official name for the upgraded tokens is Mandala Tokens, though 1Color Tokens was considered as an alternative. The upgrade was a collaborative effort between David Case of Open Protocol Labs and Darren Kellenschwiler of the BSV Association, who merged their respective standards to create a single, more efficient token protocol.