- Voting for IOTA’s Network Fund Proposal SGP-0012 is underway, targeting major network infrastructure upgrades.
- The proposal plans to wind down Tangle DAO and replace it with a leadership committee to oversee transition.
- Infrastructure gaps in bridges, exchange listings, oracles, and marketing currently limit IOTA’s full potential.
- Success depends on securing 100 votes to move to the next phase and deploying assets within 6-8 months.
- IOTA price has declined recently but breaking $0.27-$0.28 resistance could signal a bullish turnaround.
IOTA Network Fund Proposal SGP-0012: Infrastructure Growth Before DAO Shutdown
The IOTA ecosystem is at a critical juncture as voting has officially begun for phase two of the IOTA Network Fund Proposal (SGP-0012). This ambitious initiative focuses on expanding network infrastructure, accelerating ecosystem growth, and addressing significant public infrastructure gaps ahead of the planned shutdown of the Tangle DAO.
Background: The Current State of IOTA and SGP-0012
In May 2025, IOTA achieved a major milestone by launching the Rebased Protocol and the MoveVM-based mainnet — upgrades aimed at improving scalability, programmability, and decentralization. However, despite these advances, key components like bridges, exchange listings, oracles, and marketing efforts remain underdeveloped, creating bottlenecks that limit adoption and user experience.
SGP-0012 was introduced to address these issues directly. The proposal suggests using nearly all Tangle DAO assets (excluding $100,000 reserved for wind-down costs) to fund infrastructure development, public education, marketing, and exchange and service listings. The goal is to deploy these funds within 6-8 months of proposal approval, catalyzing IOTA’s next growth phase.
The Future of Tangle DAO and Governance Transition
Tangle DAO currently manages the treasury assets for both IOTA and Shimmer networks, holding approximately $700,000 in USDT, $200,000 in other cryptocurrencies including ETH, and 42 million IOTA tokens as of July 2025. The proposal calls for the discontinuation of the “Tangletreasury program” following the deployment of these assets, to be replaced by a new governance committee consisting of one lead and two co-leads to manage the transition and future development efforts.
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Past Efforts and Market Performance
SGP-0012 is not IOTA’s first proposal this year. Earlier initiatives such as IGP-0007 aimed to enhance on-chain network metrics and increase public awareness. Additionally, IOTA recently launched its Notarization toolkit, targeting a burgeoning $440 billion market predicted over the next five years.
Despite technological progress, IOTA’s price has struggled, declining 21% over the last 90 days and 5.9% in the last 24 hours, currently trading around $0.20. Technical analysis suggests that IOTA must break above resistance levels near $0.27-$0.28 to confirm bullish momentum.
A Defining Moment for IOTA
SGP-0012 represents a clear, decisive strategy to resolve infrastructure gaps that currently hamper IOTA’s ecosystem potential. With the DAO shutdown imminent, the community’s vote will determine whether this critical investment proceeds and how IOTA navigates this pivotal transition phase. The stakes are high, but the proposal offers a structured path to fully realize the promise of IOTA’s technological advancement