KEY TAKEAWAYS
- The IOTA Foundation has initiated the Voting Open phase for the IOTA Rebased governance vote, allowing token holders to decide on the protocol’s future.
- The proposed upgrade includes move-based smart contracts and a new consensus mechanism, aiming for full decentralization and high scalability.
- The governance vote will last 14 days, with the outcome determining whether the IOTA Mainnet transitions to the Rebased protocol.
The IOTA Foundation has announced the commencement of the Voting Open phase for the IOTA Rebased governance vote, starting today, Monday, December 2nd, 2024. This pivotal vote invites IOTA token holders to determine the future direction of the IOTA protocol development.
The governance proposal, which aims to upgrade the IOTA L1 Mainnet to the new Rebased protocol, is now open for voting. Token holders can participate using either the IOTA Firefly or Bloom wallet. By voting in favor, participants agree to update the IOTA Mainnet to the Rebased protocol, which is currently operational on the IOTA Rebased Testnet.
Key Features of the Proposed Upgrade
The proposed upgrade includes several significant enhancements. It introduces move-based smart contracts on a parallelized Directed Acyclic Graph (DAG)-based L1 ledger. Additionally, it aims for full decentralization of the IOTA ledger through a delegated proof of stake mechanism, featuring 150 permissionless validator slots.
The consensus mechanism is set to switch to the Mysticeti protocol, designed for high scalability and low latency, achieving over 50,000 transactions per second (TPS) with subsecond finality. The proposal also promises very low transaction fees, supported by an adaptive fee burn mechanism, which could lead to a flexible supply that is either inflationary or deflationary.
Other features include sponsored transactions that abstract transaction fees away from users, significantly enhancing the user experience. Token holders will also have the opportunity to earn IOTA tokens as staking rewards, with an initial target inflation of 6-7% per year, yielding 10-15% annual percentage yield (APY) in staking rewards.
Voting Timeline and Implications
The governance vote will span 14 days, beginning with a seven-day Voting Open Phase from 3 pm CET on December 2nd to 3 pm CET on December 9th. This will be followed by a seven-day Counting Phase, concluding at approximately 3 pm CET on December 16th.
If the community approves the protocol upgrade, the IOTA Mainnet will transition to the Rebased protocol. However, if the proposal is rejected, the network will continue operating under its current protocol. The IOTA Foundation will then decide on future development and stewardship strategies for the network.
For more details on the voting process and the proposal, interested parties can refer to the official announcement here.
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