- IOTA’s Rebase upgrade will introduce smart contracts, staking, and a new user interface, aiming for a March 2025 launch with improved scalability.
- The IOTA Gas Station feature removes the need for native tokens to cover gas fees, simplifying dApp interactions and enhancing user accessibility.
IOTA recently held a high-energy Ask Me Anything (AMA) session on Twitter Spaces. The team, led by Dominik Schiener, shared key details about the Rebase upgrade and discussed its strategic roadmap.
The session covered updates about IOTA’s transformation, including staking rewards, the introduction of a new virtual machine, and real-world applications.
— IOTA (@iota) February 27, 2025
At the base of the AMA was the IOTA Rebase, a pivotal upgrade designed to improve the network’s scalability and user experience. Schiener emphasized that Rebase is a response to the growing need for blockchain projects to deliver stronger fundamentals in a volatile market. The upgrade will bring smart contracts and staking features to IOTA while updating the network’s user interface to appeal to a broader audience.
The Rebase update is still in development, with Schiener declaring that the team is working to finalize security audits and integrate with exchanges before the official launch. Although no specific date was mentioned, early estimates suggest a March 2025 release. Schiener recommended the following updates on IOTA’s GitHub for those eager to track progress.
Staking Rewards: 10-15% APY with Liquid Flexibility
IOTA holders will soon benefit from staking, with the new Rebase system offering an annual percentage yield (APY) between 10% and 15%. Thoralf, another key figure in the AMA, outlined that staking will be accessible to all, requiring only 1 IOTA to participate. However, validators must stake tokens from day one to maintain network security, a move that is expected to attract new applications and institutional interest.
Moreover, as noted in our previous post, one of the most innovative features of the staking model is the introduction of Liquid Staking Tokens (LST). This feature will allow users to stake without locking up their assets, providing the flexibility to participate in decentralized finance (DeFi) activities while still earning staking rewards.
Rebase will replace the Ethereum Virtual Machine (EVM) with the Move Virtual Machine (VM), aligning IOTA with newer blockchain platforms such as Sui and Aptos. Thoralf explained that Move’s Rust-like syntax makes it an excellent tool for developers, providing an easier entry point for those looking to build on IOTA.
The transition to Move will help IOTA stand out in a crowded blockchain market. It will enable the network to support unique applications instead of simply replicating existing protocols. According to a report from ETHNews, in addition to Move, IOTA will introduce new features, such as the IOTA Name Service, local fee markets, and shared objects, to improve network efficiency.
The IOTA Gas Station: Simplifying User Interactions
A major highlight of the AMA was the introduction of the IOTA Gas Station, a feature designed to enhance user experience by eliminating the need for native IOTA tokens to pay for gas fees. Developers and businesses can now cover these fees on behalf of their users, making decentralized applications (dApps) more accessible to both Web2 and Web3 users. This system, launched shortly before the AMA, aims to simplify interactions with the IOTA network by removing a barrier to entry for new users.
IOTA’s ongoing real-world adoption efforts were also showcased. Schiener highlighted two key projects: Twin, a logistics platform that uses blockchain to manage supply chains, and Realize, a platform that tokenizes investment funds to replace traditional share registries. Both projects have gained traction, with Twin already operating in multiple countries and Realize poised to disrupt traditional finance by offering new ways to interact with investments.