$IOTA Rebased: A 50,000+ TPS Revolution Inspired by MoveVM and Sui Network
IOTA is stepping into a new era, inspired by @SuiNetwork.
With 50,000+ TPS scalability, MoveVM integration, and revamped tokenomics, the network is redefining the DLT space
Here’s everything you need to know about IOTA Rebased 🧵
Key Takeaways
Dual Smart Contract Ecosystem: IOTA is the first to integrate both EVM and MoveVM, blending performance and compatibility.
Real-World Adoption: Partnerships in Europe and Africa showcase IOTA's production-ready solutions, from trade logistics to digital identity verification.
Ecosystem Growth Fund: A $28M initiative to bootstrap DeFi on IOTA EVM without diluting token holders.
Robust Tokenomics: No VC allocations, fair distribution, and a focus on sustainable growth.
The Vision Behind IOTA
Since its inception nearly nine years ago, IOTA has envisioned a world free of digital barriers, enabling seamless global economic participation.
IOTA differentiated itself with its unique DAG-based ledger, feeless transactions, energy efficiency, and scalability.
Its foundational mission was not merely to iterate on existing technologies but to innovate from the ground up, offering a trusted infrastructure to digitize economies across diverse industries.
Over the years, IOTA has gained credibility as a research-driven organization, collaborating with enterprises, institutions, and governments to develop groundbreaking use cases in trade, mobility, energy, and finance.
These efforts have culminated in real-world deployments, from EnergieKnip incentivizing sustainable energy consumption in the Netherlands to blockchain-driven trade solutions facilitated by the UK Cabinet Office.
However, as the blockchain industry matured, the demands for programmability and advanced functionality became clear. While IOTA 2.0 achieved full decentralization with its feeless architecture, its limitations in enabling Layer 1 smart contracts made further innovation imperative.
Fast forward to today, and IOTA hasn’t just kept up—it’s leading the charge with its latest upgrade, IOTA Rebased.
Introducing IOTA Rebased
The IOTA Rebased proposal reimagines the network’s future, focusing on programmability and scalability with Move Virtual Machine (MoveVM) and Delegated Proof of Stake (DPoS) consensus.
Highlights of the Proposed Protocol:
50,000+ TPS scalability for high-throughput applications.
Dual VM Compatibility: EVM for Ethereum dApps and MoveVM for secure, efficient execution.
$IOTA Staking: Incentives to drive participation and secure the network.
Inspired by Sui and Meta-backed Move technology, IOTA Rebased aims to fast-track adoption, boost token utility, and deliver greater ecosystem value.
The proposal introduces an object-based DAG ledger built on DPoS, combining scalability, security, and improved tokenomics for long-term sustainability.
Dual Smart Contract Ecosystem
IOTA distinguishes itself from other L1s by supporting both EVM and MoveVM, providing:
Wider Developer Appeal: Attracts Ethereum and Move developers.
Flexibility & Compatibility: Combines Ethereum dApp compatibility with MoveVM’s secure execution.
Future-Proofing: Unlike Aptos and Sui, IOTA bridges both ecosystems for greater versatility.
This dual approach positions IOTA as a forward-looking network that can cater to diverse developer needs while maintaining compatibility with existing ecosystems.
Ecosystem Growth
In June 2024, IOTA launched its Layer 2 EVM, quickly amassing $30M in TVL. To accelerate adoption, the community allocated 172M dormant IOTA tokens (~$28M) for a two-year Liquidity Bootstrapping program, supporting DeFi development without diluting current holders.
IOTA’s EVM has secured severalkey partnerships and integrations, including:
Rabby Wallet for wallet support.
LayerZero & Stargate for seamless cross-chain bridging.
Pyth Network for accurate oracle pricing.
Assets can be bridged to IOTA EVM via Stargate Bridge at -
https://stargate.finance/bridge
IOTA Rebased will introduce Move-based smart contracts on L1 while continuing to support the IOTA EVM on L2.
This will ensure:
Efficient scalability through predictable gas fees.
Staking rewards to incentivize participation.
Real-world applications for both developers and users.
Real World Use-Cases
Trusted Partner in Europe
IOTA has earned its spot as a go-to blockchain solution in Europe, combining cutting-edge innovation with strict regulatory compliance.
Key Achievements:
European Blockchain Services Initiative: IOTA stood out as one of three finalists, developing prototypes like digital product passports and tools for managing intellectual property across borders.
European Blockchain Sandbox: Chosen to tackle tricky regulatory challenges like secure identity verification, all while meeting EU standards for AML and KYC.
This is a huge nod to IOTA’s ability to marry blockchain tech with real-world rules and systems.
Changing the Game in Global Trade
IOTA is making waves in trade logistics with the Trade and Logistics Information Pipeline (TLIP), a blockchain solution that’s already live and delivering real results:
Up and Running in Kenya: TLIP is simplifying trade processes by enabling real-time data sharing, faster product certification, and cutting down red tape.
Scaling Globally: With support from the Tony Blair Institute, this project is primed for expansion, setting a new standard for trust and interoperability in global trade.
Bridging Blockchain and TradFi
IOTA’s work with Real World Assets (RWAs) shows how blockchain can transform traditional systems:
First in Abu Dhabi: IOTA became the first blockchain foundation registered in the Abu Dhabi Global Market (ADGM).
On-Chain Tokenization: Partnering with Realize, IOTA launched an ADGM-based fund that tokenized U.S. Treasuries, blending traditional finance with the blockchain world.
From Europe to Kenya and Abu Dhabi, IOTA’s partnerships are proving that blockchain isn’t just hype—it’s here to solve real problems.
Enhanced Tokenomics
The updated tokenomics in IOTA Rebased focus on sustainability and user inclusivity. It introduces a fee-burning mechanism similar to Ethereum and Solana to reduce supply while maintaining low fees.
Validators are rewarded with staking incentives of up to 15% APY, encouraging participation and network security.
Additionally, features like sponsored transactions cover user costs, making the network accessible and efficient for real-world applications.
IOTA stands out from many new blockchain projects with a major advantage: no VC allocations.
Its funding came entirely from its initial ICO, meaning there are no looming large VC unlocks that could disrupt the market.
The Stardust hard fork brought a revamped tokenomics model, designed for long-term growth and ecosystem development:
60% of Supply: Allocated to existing holders, preserving value for early supporters.
40% of Supply: Dedicated to ecosystem growth and contributors, ensuring ample resources to drive innovation and expansion.
Circulating Supply and Inflation
76% of Tokens in Circulation: IOTA has a high proportion of its supply already released, with the remaining 24% to be distributed over the next 3 years.
Low Inflation: This gradual release equates to an annual inflation rate of 12%, striking a balance between incentivizing growth and maintaining token stability.
IOTA’s circulating supply outpaces many competitors in the MoveVM space, reflecting its mature token distribution:
Sui: 28.5% circulating supply
Aptos: 47.2% circulating supply
What’s Next?
IOTA Rebased promises to elevate the network's onboarding, user experience, and utility, making it more appealing to both developers and users.
After rigorous testing, the upgrade will launch directly on the mainnet, marking the end of Shimmer's role as a staging network.
The IOTA Rebased Testnet is already live, offering an opportunity to explore the MoveVM, test dApps, and experience the staking rewards firsthand.
With the mainnet launch scheduled for 2025, IOTA is set to redefine its ecosystem. Stay updated by visiting their website, and dive into more details about the rebrand here -
https://blog.iota.org/iota-rebased-fast-forward/