- IOTA has proposed a major upgrade called “Rebased Protocol” to transition to full decentralization and subject its Transaction Per Second (TPS) to a significant increase.
- A successful approval would make the IOTA Rebased the first Layer 1 network that supports both MoveVM and EVM.
IOTA (IOTA) has announced that it is rebasing its Layer 1 (L1) IOTA protocol on a new one called IOTA Rebased. According to its blog post, this significant move would accelerate adoption and subject its tokens to a better value proposition.
Explaining this initiative, the team highlighted that today’s blockchain ecosystem has significantly advanced beyond “just creating novel technologies,” to building ecosystems and applications to drive utility and adoption. In this case, the IOTA Rebase would provide real-time value by shortening marketing time to ensure that programmability and full decentralization are introduced on the network. Meanwhile, the Rebased Protocol would introduce five key features:
- Full decentralization with 150 validators.
- Parallelized MoveVM and EVM support
- More than 50,000 Transaction Per Second (TPS) with less than 500ms finality
- Low transaction fees and fee burn mechanics.
- 10-15% $IOTA staking APY
According to our research, the IOTA Rebased would become the first layer 1 network that supports both MoveVM and EVM. Fascinatingly, the parallelized DAG-ledger on the network would also ensure that the MoveVM is highly optimized and scalable.
The EVM-compatible L2 will significantly lower the entry barrier for dApps to deploy on IOTA. This strategy maximizes the possibilities for builders to innovate and create unique applications on IOTA. We want to see our ecosystem blossom and be at the forefront of innovation with new applications in trade finance, stablecoins, on-chain order book exchanges, liquid staking tokens (LSTs), ZK, mobile and more.
The Rebased Protocol and the Upcoming Voting
The Rebased Protocol would be an alternative to continuing research on other methods of integrating L1 smart contract capabilities into IOTA 2.0.
Rather than continuing the development of the IOTA 2.0 protocol, we propose implementing an object-based ledger architecture on a DAG, using the Move programming language to enable smart contract functionality directly on the L1 ledger. This approach would incorporate a delegated proof of stake protocol to distribute consensus voting rights to validators and stakers.
According to the information at our disposal, the voting process would start on December 2 and it would last for seven days. The counting phase would also last for a week. Once launched, IOTA would transition to a delegated Proof of Stake (dPoS) system to remove centralized and permissioned components.
Our growing #Web3 ecosystem integrates real-world assets and use cases. We aim to create a novel ecosystem with tangible value & exciting opportunities for both builders & investors. To bring more applications onchain and accelerate adoption, we need L1 Smart Contracts. 4/9 pic.twitter.com/DJzo7oZzH5— IOTA (@iota) November 18, 2024
Explaining the journey so far, the team disclosed that IOTA sought to adopt the movement of MoveVM from Sui to IOTA after finding similarities with the design goals, architecture, and the underlying parallelized DAG ledger. Later, it decided to establish protocols and improve existing initiatives that align with the ideas and principles of IOTA.
At press time, IOTA was trading at $0.18 after surging by 11% in the last 24 hours.
