Wednesday, February 19, 2025

IOTA Foundation Proposes ‘IOTA Rebased’ for Enhanced Decentralization and Programmability

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KEY TAKEAWAYS

  • The IOTA Foundation proposes ‘IOTA Rebased’ to achieve full decentralization and enhanced Layer 1 programmability.
  • The new protocol aims for scalability with over 50,000 TPS and includes $IOTA staking for a faster mainnet launch.
  • IOTA Rebased will feature a Delegated Proof of Stake consensus and integrate Move-based smart contracts for advanced applications.
  • A governance vote on December 2nd will determine the adoption of the new protocol, with a potential mainnet upgrade following successful testnet and audits.

The IOTA Foundation has announced a proposal to rebase IOTA’s Layer 1 protocol, introducing a new protocol named ‘IOTA Rebased.’ This initiative aims to achieve full decentralization, Layer 1 programmability with MoveVM and EVM support, and scalability exceeding 50,000 transactions per second (TPS). The proposal also includes $IOTA staking, offering a faster path to a new mainnet compared to the current IOTA 2.0 plans.

The decision to adopt this new protocol will be determined by a governance vote. If approved, the new mainnet could launch following a testnet phase, security audits, and exchange integrations. This upgrade is designed to unlock advanced programmability, better meeting industry demands and accelerating ecosystem growth.

IOTA’s Path to Decentralization and Programmability

Since its inception, IOTA has been focused on creating a decentralized and feeless digital ledger. The removal of the Coordinator, a central node that validated transactions, marked a significant step towards decentralization. This was achieved through the Stardust protocol upgrade in 2023, which replaced the Coordinator with a distributed validator committee.

Despite these advancements, the IOTA Foundation recognized the need for Layer 1 smart contracts to enhance the protocol’s utility beyond token transfers. The integration of EVM-based smart contracts was completed with the launch of the IOTA EVM in May 2024, allowing IOTA to compete in the Web3 space.

The Foundation’s internal assessments concluded that the Move Virtual Machine (MoveVM) is the most promising solution for IOTA’s DAG ledger, leading to the development of a functional prototype by December 2023. However, integrating MoveVM into IOTA 2.0 was deemed a multi-year effort, prompting the exploration of IOTA Rebased as a more efficient alternative.

Fast Forward with IOTA Rebased

IOTA Rebased aims to deliver a scalable and programmable network within a shortened timeframe. The new protocol will leverage IOTA’s experience in the blockchain market and its relationships with enterprises and regulators to accelerate its mission of becoming a leading global infrastructure.

The proposed protocol will feature an object-based DAG ledger running on a Delegated Proof of Stake (DPoS) consensus, known as Mysticeti. It will incorporate improved tokenomics, low transaction fees, and a fee-burning mechanism similar to Ethereum and Solana. Additionally, Move-based smart contracts will introduce a new application paradigm, while the IOTA EVM will continue to support Layer 2 applications.

The IOTA Foundation has launched the IOTA Rebased testnet, allowing the community to explore the new protocol. A governance vote will take place on December 2nd to decide whether to proceed with the upgrade. If approved, the IOTA mainnet could be upgraded following a two-month testnet phase, security audits, and exchange integrations.

For more details, the IOTA Foundation’s announcement can be read here.


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Sharif
Sharif
Sharif is a seasoned software engineer with a decade of experience in the tech industry, including 8 years in cryptocurrency and blockchain. With deep knowledge of decentralized technologies, Sharif offers insightful analysis and expert commentary on the transformative potential of blockchain. Through CoinsHolder.com, he shares his expertise, making him a respected voice in the cryptocurrency community.

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