- The Mana Station module in IOTA 2.0 will enable the purchase or sale of mana for executing smart contracts, creating a dynamic marketplace in the process.
- Node operators will have opportunities to generate revenue by supplying mana to the Mana Station, ensuring a continuous flow of fees that sustains the network’s functionality and growth.
When it comes to revolutionizing the blockchain, IOTA 2.0 is leading the way with its novel component, Mana. This unique commodity is the essence that binds the entire network, making it more functional, accessible, and profitable to engage with.
Mana is designed to secure the zero-fee #IOTA network.
It handles node-peering, voting & throughput/congestion control, to protect the network from spam, and will be a critical component in IOTA 2.0.
Check out our latest article about which role the MANA STATION will play 🪄: https://t.co/FXdu0MONYs
— Holger Köther ✨ (@HolgerKoether) August 2, 2023
Mana’s Role in Smart Contracts
An aspect of mana that is often overlooked is its role as the “fuel” for executing smart contracts (SCs) on the Tangle. Despite the possibility of alterations during the development phase, it’s clear that mana is the conduit of innovation, propelling the IOTA Foundation and the broader ecosystem forward.
Yet, the process of generating and sharing mana isn’t a walk in the park; it involves intricate complexities. To ensure a thriving ecosystem of applications executing business logic on the Tangle, these complexities must be skilfully abstracted. To address this, BUILD.5, an integral part of the IOTA network, has been developing operational models for its Mana Station module.
Decoding Mana Station
At its heart, Mana Station is a bustling marketplace where SC creators and users can trade mana for their smart contract execution needs. It enables nodes with enough mana to offer their resources, granting access to the Tangle and powering smart contracts in return for compensation.
Being a vital link between the BUILD.5 components, the Mana Station serves as a separate module to operate SCs and internal business logic. It fosters the generation of mana via node management, rewarding node operators with collected fees.
The blueprint of Mana Station is aimed at nurturing a thriving ecosystem. Here, node operators are motivated to contribute mana, and smart contracts and applications have adequate mana resources for effective functioning. In this sense, by creating a dynamic marketplace, Mana Station promises to be a key player in promoting the growth and adoption of IOTA 2.0’s smart contract capabilities.
Being the biggest issuer of transactions on IOTA 2.0, the BUILD.5 platform understands the necessity of a reliable system for round-the-clock input and execution of information on the Tangle.
Mana Station: A Revenue Generator
As a pioneer adopter and implementer of IOTA 2.0 SCs, BUILD.5 will trigger an instant demand for mana, which will increase as more creators join the IOTA ecosystem. While initially designed for powering BUILD.5’s SCs and business logic, the decentralized nature of the Mana Station allows external utilization by other applications and developers.
Node operators will have an opportunity to earn revenue by supplying mana to the Mana Station, with fees charged in different currencies. This arrangement will ensure a consistent supply of mana, ready for deployment.
Additionally, developers can set up a node with the BUILD.5 console, making it the default node for their applications, and start earning revenue from user transactions. The Mana Station’s rules, fee structures, and other parameters will be governed through community-driven consensus mechanisms for transparency and fairness, ensuring continued support and adoption.
Balancing Supply and Demand
Having public nodes is not enough, an equilibrium between supply and demand is vital. Mana Station plays the role of a trustless intermediary that charges fees for its services, with a share of these fees going back to the node operators. It ensures a balanced economy between mana suppliers (node managers generating mana) and mana consumers (SCs and applications).
The BUILD.5 team, conscious of this, is collaborating with enterprises to create demand for mana, while also boosting the supply through this innovative module. Over time, fluctuations in costs will necessitate the management of mana supply. The Mana Station module, with its fee system, allows for control and management of these fees.
By striking a balance between supply and demand, the Mana Station plays a crucial role in the broader ecosystem of IOTA 2.0. The ecosystem thrives on this symmetry between consumers and contributors, making a distribution system like the Mana Station vital to ensure a functional market to access the Tangle and execute logic on it.
Overall, the Mana Station serves as the backbone of the IOTA 2.0 network, providing a mechanism for balancing supply and demand of mana while powering SCs and applications across the ecosystem. It enables both BUILD.5 and node operators to generate revenue and ensures a continuous flow of fees to sustain the network’s functionality and growth.
