We just changed the Prosody authentication provider module to hashed SCRAM-SHA-1 passwords.
You most probably will not notice anything. But if your client does not support SCRAM-SHA-1 the password will be sent in plain, not DIGEST-MD5 like until now. So be sure you only use a TLS/SSL connection to the server to protect the password (and also all your other XMPP data like chat messages) inside an encrypted data stream. Some clients might show a warning that DIGEST-MD5 is not longer available on the server.
The next time you log in the password will be automaticly hashed with SCRAM-SHA-1 mechanism.