Layer-1 blockchain Iota is gearing up for a monumental shift on Monday, 5 May 2025, transitioning from the Stardust network to the innovative IOTA network with its Rebased Protocol upgrade. This significant change is described by the team as the network’s “most substantial, intricate,, and crucial upgrade to this point.”
The essential protocol features set to be immediately available at launch include the Mysticeti consensus protocol. This advancement promises to skyrocket the’s scalability and speed, targetingting over 50,000 transactions per second with transaction finality dropping below 500 ms. the announcement.
Furthermore, Iota is enhancing its platform by embeddingowing smart contracts, utilizing the Move programming language onto its Layer 1.. This development is designed to make it easier for developers to craft “sophisticated,” scalable, and secure decentralized applications. Iota becomes the third network to adopt MoveVM, standing alongside networks like Sui and Aptos.
The upgrade also introduces minimal transaction fees with an adaptive fee-burning mechanism and unveils the new IOTA Gas Station, enabling developers and businessesmeto cover transaction fees for their users. This will make it possible for users to conduct transactions without needing IOTA coins themselves. Moreover, the network is set to transform into a fully decentralized delegated Proof-of-Stake network (DPoS), starting with 50 permissionless validator slots, which will gradually expand to more than 150.
The initial genesis validators for IOTA Rebased include notable organizations such as the IOTA Foundation and the Tangle Ecosystem Association, among others. This move has been backed by a governance vote, thorough technical testing, review, and audit processes.
Excitingly, the Rebased upgrade will also introduce staking rewards for the first time in the project’s history, offering an annual percentage yield (APY) of up to 10%–15%. This is a milestone for IOTA, marking the project’s first venture into staking rewards, incentivizing token holders to actively participate in securing the network.
“IOTA’s journey to Rebased Protocol marks a pivotal moment, readying the ecosystem for significant new adoption.” #IOTA #BlockchainUpgrade #Web3
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