IOTA, a leading blockchain network, has recently announced a significant upgrade to its infrastructure in a bid to enhance scalability, decentralization, and real-world applications. The upgrade, known as “IOTA Rebased,” will see the transition of IOTA’s Layer 1 network to a Move-based object ledger, allowing for programmability and enabling tens of thousands of transactions per second.
If approved by token holders, the upgrade will introduce a delegated proof-of-stake mechanism with 150 permissionless validators to secure the network. This shift to a decentralized structure is expected to result in faster and more secure transactions on the IOTA network. Additionally, the upgrade will incorporate the Move programming language, enabling the implementation of smart contracts directly on the Layer 1 network.
The move towards a more decentralized architecture is aimed at expanding IOTA’s application in various industries such as supply chain tracking, asset tokenization, and digital identity systems. The IOTA Foundation has set up a governance post to facilitate community discussion and debate on the protocol upgrade, with an official vote scheduled to go live on December 2.
In a move to further enhance its capabilities, IOTA has joined the Move ecosystem alongside platforms like Sui and Aptos, becoming the first Layer 1 network to adopt this architecture. The foundation has also launched a Move-based testnet to showcase the upgrade’s potential, along with providing tools for developers such as a browser wallet extension and updated documentation.
Under the proposed economic model, staking rewards and a dynamic token supply will be introduced, with validators and delegators earning newly minted IOTA tokens. The initial annual inflation rate is projected to be around 6-7%, offering a potential 10-15% annual return for stakers. This model aims to incentivize network participation while maintaining fair tokenomics through mechanisms like fee burning.
Dominik Schiener, Co-Founder and Chair of the IOTA Foundation, expressed optimism about the upgrade, stating that it could significantly accelerate adoption efforts by introducing programmability and full decentralization to IOTA. The foundation aims to strengthen its position as a leading blockchain infrastructure, focusing on bridging decentralized technology with practical, real-world applications.
Overall, the IOTA network upgrade represents a significant step towards enhancing scalability, decentralization, and real-world adoption, positioning IOTA as a key player in the blockchain space.