IOTA Rebased Proposal Nears Approval, Promising L1 Programmability and Faster Development Timelines

The IOTA Rebased proposal is on the cusp of approval, with 98% of community members supporting the upgrade. The voting period, which started on December 2, 2024, is set to close on December 16.

The IOTA community is set to approve the IOTA Rebased proposal, with 98% of members voting in favor of the upgrade. Launched on December 2, 2024, the voting period will conclude on December 16, and token holders can participate by casting their ballots through the IOTA Firefly or Bloom wallet.

Aimed at paving the way for faster development, IOTA Rebased marks a departure from the previously explored IOTA 2.0, offering L1 programmability. By adopting established DLT technology, the IOTA Foundation aims to enhance the network’s flexibility and programmability, enabling the creation of complex applications written via smart contracts.

A Technical Overview of IOTA Rebased

The proposal entails a major shift, transitioning from a UTXO to an object-based ledger model using the Move Virtual Machine, as highlighted in the official report. The MoveVM will bolster programmability, facilitating the creation of financial instruments and other applications that demand intricate resource management. Developers will be able to process more than 50,000 transactions per second with the upgrade.

The MoveVM implementation aims to provide a robust and efficient platform for developing smart contracts on the IOTA Rebased network. At its heart, the MoveVM employs resource-oriented programming to ensure secure and flexible digital asset management, enabling developers to create complex applications with greater ease. The VM's strong data abstraction capabilities simplify intricate tasks, making them easier to manage and preventing errors.

Moreover, the implementation includes static verification, which identifies vulnerabilities prior to code execution, thereby enhancing security. Notably, MoveVM also supports formal verification, allowing for rigorous validation of contract logic and ensuring that smart contracts function as intended.

As previously reported, IOTA Rebased is set to launch its new tokenomics model, which is designed to incentivize network participation, long-term sustainability, and decentralized security. This approach to compensation will see validators and their delegators receive newly minted tokens, with 767k new IOTAs being minted per epoch, leading to a 6% growth in supply during the first year. Built on the Sui-based protocol, IOTA Rebased inherits design principles from IOTA 2.0, including parallel execution, a DAG-based mempool, and PoS validation.

With IOTA Rebased on the horizon, the ecosystem is already witnessing growth, as the Layer 2 EVM platform has achieved $86M in TVL within six months. In a bid to accelerate adoption, IOTA has allocated $28M to DeFi development over the next two years. One significant collaboration that IOTA has undertaken is with the Trade and Logistics Information Pipeline in Kenya.

While the broader cryptocurrency market experienced a positive session on Wednesday, IOTA showed a reversal, becoming one of the worst-performing top-100 cryptocurrencies and currently trading at $0.4239, up 14.15% in the past 24 hours and down 11.6% in the past 7 days.