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- IOTA Rebased introduces asset migration, updated wallets, a new tokenomics model with inflationary staking rewards offset by fee burning, and EVM compatibility on Layer 1.
- The vote on IOTA Rebased will run from December 2 to December 16, marking a pivotal moment in its evolution.
IOTA, one of the blockchain platforms famous for its Tangle technology, is now announcing a huge transition after releasing “IOTA Rebased.” IOTA Foundation Board member Lica Moser revealed this move in a recent Tangle Talk session. Moreover, it represents a strategic change to face all the previous struggles and strengthen the ecosystem for future times.
Everything About IOTA 2.0
Moser explained that the rationale for adopting “IOTA Rebased” was a practical one. He said, “IOTA 2.0 was designed for token transfers but struggled to support Layer 1 smart contracts. Making it work would have required costly modifications, protocol breaks, and years of delays.”
With this in mind, the Foundation had decided to fork SUI, a blockchain that already had demonstrated infrastructure, specifically for Move smart contracts, reported CNF. The idea seems to promise faster deployment and fewer disruptions to developers.
The restructuring of the IOTA Foundation at the beginning of this year also paved the way for this transition. Merging Research and Development teams, the Foundation aimed to make cooperation better and come up with meaningful products. “Researchers and developers now work side by side,” said Moser, suggesting streamlined efforts to bring the vision of IOTA forward.
Between April and November 2024, developers transitioned from Go to Rust and worked extensively with SUI’s codebase to adapt it for IOTA. The team also ran a seven-month testnet for IOTA 2.0 to explore its potential, reported CNF.
These developments occurred in a closed environment to avoid external pressures, but IOTA is now re-engaging its community through developer office hours, regular updates, and improved documentation for the Move programming language.
Features Of IOTA Rebased
Prominent characteristics of IOTA Rebased include asset migration from Stardust to the new platform, updated wallet and browser extension, and refreshed tokenomics model. The new design would introduce inflationary staking rewards that are balanced by burning transaction fees- the so-called “built-in deflationary mechanism,” as described by Moser.
Moreover, EVM compatibility will be realized on Layer 1, thus catering to a more diversified set of developers and users. Governance remains a priority. The foundation will include on-chain voting and automated treasury management based on Move smart contracts.
Moser said the Foundation is evolving from theoretical perfection to practical innovation: “The focus is building real-world applications and partnerships.” The reaction of the community to the transition has been mixed. While some IOTA veterans raised concerns, the general crypto community praised the pivot.
Furthermore, the clear direction and the ecosystem improvements seem to move developers and researchers. Also, it’s important to note that the vote on IOTA Rebased is set to begin on December 2 and will be finalized by December 16. The success of the vote will be the beginning of a new chapter for IOTA; as Moser said, “IOTA is now in its strongest position ever.”