- IOTA’s Rebased upgrade introduces Move-based smart contracts and DPoS, enhancing scalability and programmability for real-world applications.
- The new tokenomics and epoch-based minting system strengthen IOTA’s security, sustainability, and decentralization for long-term growth.
IOTA’s latest Rebased upgrade is marking a major moment in the expansion of the blockchain network. This update addresses the long-standing scalability, transaction costs, and decentralization challenges, positioning IOTA as a more efficient and developer-friendly platform. With its new features, IOTA aims to open the way for real-world applications and create a solid network that attracts developers to innovate.
"With these features, IOTA is a sustainable, high-performance blockchain solution that supports real-world applications and developer innovation."
We are here for big things with IOTA, and Rebased is the catalyst. https://t.co/U26SoH1A3h
— Dominik Schiener (@DomSchiener) March 18, 2025
IOTA was originally designed to offer a scalable and efficient alternative to traditional blockchains. However, its earlier reliance on a coordinator node for network validation limited decentralization. The introduction of IOTA Rebased signals a major technological leap, focusing on decentralization, security, and economic sustainability.
Among the major improvements are Move-based smart contracts, a Delegated Proof-of-Stake (DPoS) model, and a shift to an object-based ledger. These features make IOTA more scalable and enhance programmability, enabling developers to build more efficient decentralized applications.
Key Features of the IOTA Rebased Upgrade
One of the standout elements of the IOTA Rebased upgrade is its Move-based smart contracts. This change allows for greater flexibility and security in programming directly on the blockchain. In addition, the Delegated Proof-of-Stake (DPoS) model ensures that IOTA’s network can handle higher throughput while maintaining security.
Another transformation in the Rebased upgrade is the transition from a UTXO model to an object-based ledger. This shift enhances transaction efficiency and simplifies the overall system, making it easier for developers to integrate IOTA into real-world use cases.
The move is complemented by introducing new tokenomics, such as staking rewards and a transaction fee-burning mechanism, ensuring the network’s long-term sustainability.
Economic and Security Model
IOTA’s new tokenomics and security model focuses on providing incentives for all network participants. Token holders can stake their tokens to help secure the network and participate in governance.
Validators earn rewards based on their performance and stake, while some transaction fees are burned, potentially reducing supply over time. This model encourages active participation while ensuring the network’s sustainability and security.
Introducing an epoch-based minting system, which generates 767,000 new IOTA tokens per epoch, further strengthens the network’s ability to remain competitive and adaptive in the evolving blockchain landscape.
Additionally, IOTA’s on-chain governance mechanism empowers token holders to vote on major protocol changes, making the ecosystem more community-driven and transparent.
IOTA’s focus on scalability and low-cost transactions positions it as a promising solution for various industries, including supply chain management, decentralized finance (DeFi), and enterprise applications. As we reported previously, with its Rebased upgrade, IOTA is set to attract more developers and projects, as the network’s efficiency and programmability align with the needs of modern digital economies.
The IOTA ecosystem continues to change, with plans to increase its scalability and developer adoption further. Key developments on the horizon include sharding to improve throughput, broader integration of Move-based smart contracts, and strategic partnerships across DeFi and enterprise sectors.