- IOTA Rebased, with 98% community support, introduces a major upgrade by implementing Layer 1 programmability using the Move Virtual Machine, enhancing smart contract capabilities and scalability.
- The proposal is designed to streamline development and drive network growth through innovative tokenomics and collaborations, despite recent market fluctuations.
IOTA is on the brink of a transformative upgrade with the IOTA Rebased proposal nearing approval. With an overwhelming 98% community support, this significant advancement promises to revolutionize the network’s capabilities by enabling Move-based smart contracts and streamlining development processes. Set to close on December 16, 2024, the proposal represents a significant step forward for the IOTA ecosystem.
IOTA Rebased: A Leap Forward
IOTA Rebased is more than just an upgrade; it marks a significant evolution from previous iterations such as IOTA 2.0. The primary focus of this proposal is to implement Layer 1 (L1) programmability, allowing for faster and more efficient smart contract development. By moving away from a UTXO model to an object-based ledger using the Move Virtual Machine (MoveVM), IOTA aims to enhance the network’s flexibility, security, and scalability.
Technical Insights into IOTA Rebased
At its core, IOTA Rebased introduces a transition from UTXO (Unspent Transaction Output) to an object-based ledger model, utilizing the MoveVM for robust smart contract execution. This new implementation supports the creation of complex financial instruments and applications, facilitating over 50,000 transactions per second.
The MoveVM leverages resource-oriented programming, ensuring secure and flexible management of digital assets. Its static verification capabilities detect vulnerabilities before code execution, drastically enhancing security. Additionally, formal verification further ensures that contract logic operates accurately, reducing the risk of errors.
Tokenomics and Ecosystem Growth
One of the most notable aspects of IOTA Rebased is its innovative tokenomics model. This approach is designed to foster network participation, long-term sustainability, and decentralized security. Validators and their delegators will receive newly minted tokens, with 767,000 IOTAs generated per epoch, resulting in a 6% growth in supply during the first year. Built on the Sui-based protocol, the proposal also incorporates parallel execution, a DAG-based mempool, and Proof-of-Stake (PoS) validation.
Additionally, IOTA’s ecosystem is expanding rapidly. With the Layer 2 EVM platform achieving $86 million in Total Value Locked (TVL) within just six months, and a commitment of $28 million allocated for DeFi development over the next two years, the network is poised for widespread adoption.
Collaborations and Market Dynamics
IOTA’s recent collaborations, including a notable partnership with the Trade and Logistics Information Pipeline in Kenya, underscore its ambition to strengthen global utility. Despite these positive advancements, the network has seen fluctuations in market performance, becoming one of the worst-performing top-100 cryptocurrencies recently. This comes with a current trading price of $0.4239, showing a 14.15% increase in the past day but an 11.6% decline over the last seven days.
Conclusion
IOTA Rebased is shaping up to be a pivotal moment for the IOTA ecosystem, pushing the boundaries of smart contract development and network scalability. With robust security, enhanced programmability, and a forward-thinking tokenomics model, the proposal is set to redefine how decentralized applications operate on IOTA’s network. As the community rallies behind this upgrade, its potential for driving innovation and long-term success becomes evident.
