IOTA’s Rebased Upgrade Enhances Decentralization, Scalability, and Security

IOTA is redefining blockchain scalability and efficiency with its latest upgrade, IOTA Rebased. According to a tweet by BlockHunters, this transition will introduce a Move-based ledger, a Delegated Proof-of-Stake (DPoS) system, and a revamped economic model designed for long-term sustainability.

IOTA, launched in 2015, initially relied on a coordinator node that validated transactions, providing security but requiring centralized control. The transition to IOTA Rebased reduces reliance on a single governing body by establishing a fully decentralized and scalable system.

What Rebased Means for the Future

The Rebased upgrade implements a strategy where IOTA adopts a Move-based ledger and the Delegated Proof-of-Stake model. Dominik Schiener, IOTA’s founder, claims this upgrade transforms IOTA into a sustainable, high-performance blockchain that supports real-world applications and fosters developer innovation. He stated, “We are here for big things with IOTA, and Rebased is the catalyst.”

These features enhance security and programmability at the base layer, permitting token holders to transfer stakes to validators and improving transaction efficiency by moving away from the UTXO model.

New tokenomics incorporate staking rewards, burning of transaction fees, and an adaptive inflation rate which bolster the network’s economic durability. The IOTA Rebased update deviates from initial IOTA 2.0 plans, being based on improved distributed ledger technology (DLT).

This redesign enables the development of complex smart contracts and decentralized applications (dApps). The integration of Delegated Proof-of-Stake enhances security and efficiency by changing the participation model of validators. Staking tokens allows holders to enable validators to perform transactions and safeguard the network, resulting in accountability based on validator performance.

IOTA’s Economic Model

The Rebased upgrade presents a new economic model that reformulates supply distribution and staking rewards. Currently, $IOTA has transitioned to a model where 4.6 billion tokens are migrated, with 767,000 new tokens produced every epoch. A dynamic inflation model ensures sustainability, while transaction fee burning decreases the total coin supply.

Validators and delegators receive fair compensation for their contributions, and staked tokens cannot be withdrawn by validators or outside parties, enhancing network reliability.

IOTA’s gas model focuses on affordability and sustainability. While computation fees lower token supply, storage deposits are fully refundable, promoting efficient data use. The gas price self-regulates each epoch to prevent spam purchases, ensuring predictable costs for users and developers. As of now, IOTA is trading at $0.1807, reflecting a 1.20% increase in 24 hours.