IOTA (IOTA) Unveils Rebasing Protocol With $IOTA Staking Rewards, Promises Real Utility to Token Holders

IOTA (IOTA) has unveiled more information on the much anticipated Rebased Protocol including the upcoming governance voting and an abstract of this groundbreaking development.

IOTA (IOTA) has disclosed more details about the highly anticipated Rebased Protocol, including the upcoming governance voting and a summary of this groundbreaking development.

Get ready for IOTA Rebased Tokenomics, bringing real utility to IOTA token holders🌀. Our Governance Proposal introduces for the first time $IOTA staking rewards. Stake your IOTA tokens to:

✅Secure and decentralize the network

📈Earn staking rewards for it (10-15% APY)…

pic.twitter.com/J3aB7QuVFV

— IOTA (@iota) November 20, 2024

The IOTA Foundation is deeply interested in L1 programmability via smart contracts, which is why we’re embracing technology that can integrate this capability into IOTA quickly and efficiently. This approach will allow us to bypass the lengthy production timeline of the previously explored IOTA 2.0 protocol.

Moreover, we’re excited to announce that the network will gain L1 smart contract capabilities through the support of SUI’s Move Virtual Machine (MoveVM).

Upon analyzing a blog post detailing this project, we discovered that the Rebased Protocol will facilitate the transition to a delegated Proof of Stake (dPOS) system to achieve full decentralization.

Rebasing our architecture with one of the most performant and sustainable technologies available gives us a solid foundation to re-integrate some principles of IOTA 2.0. This approach allows us to unlock IOTA’s full potential immediately without disrupting any development in the IOTA ecosystem with the breaking changes that integrating L1 smart contracts into the original IOTA 2.0 protocol would entail.

More About the Upgrade

The main goal of this upgrade, as communicated by the team, is to provide a network that is ready to use for the ecosystem and its participants. This decision, however, has been challenging as it clashes with some of the network's core principles. A successful Rebasing will open up opportunities for further innovation and expansion on the network.

At the IOTA Foundation, we believe there is no future for IOTA without L1 programmability. We cannot continue on a path that excludes an L1 smart contract solution. We also cannot afford additional years of R&D with uncertain outcomes, and we fear that our greatest asset—our reputation, expertise, and trust with industry and governmental partners—would wither and potentially disappear during years of inactivity and waiting. This is why we have opted to take a pragmatic approach and advocate to focus on delivering value to IOTA and our ecosystem as quickly as possible through the IOTA Rebased protocol.

For the time being, the Public Testnet Phase will be carried out. Once the protocol is approved, it will be officially transitioned to the mainnet. As part of the process, the team will migrate the current IOTA ledger to a new technology stack. Furthermore, IOTA will be integrated with Move-based smart contracts. Some of the other features to anticipate are:

On December 2, the voting phase will begin. After seven days, the counting phase will start. According to the team, if the community rejects the upgrade, the network will continue to function as it currently does.

IOTA was trading at $0.1698 at press time, having decreased by 1% over the last 24 hours.

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