IOTA announces network upgrade for more real-world adoption

The IOTA Foundation announced a comprehensive upgrade to its blockchain network aimed at improving scalability, decentralization, and real-world use cases.

Called “IOTA Rebased,” the proposal will migrate IOTA’s Layer 1 network to the Move-based object ledger, providing programmability and enabling tens of thousands of transactions per second.

If approved by token holders, the upgrade would mean moving to a delegated proof-of-stake mechanism with 150 permissionless validators to secure the network.

This move will replace the current architecture of IOTA (IOTA) with a decentralized structure, allowing faster and more secure transactions. The offering also includes the Move programming language and enables smart contracts to be executed directly on the Layer 1 network. According to the company, this feature is designed to expand IOTA’s application in industries such as supply chain tracking, asset tokenization and digital identity systems.

IOTA has created a governance post so the community can discuss and discuss the protocol upgrade. Voting will officially begin on December 2.

In August, IOTA introduced a blockchain-based tool to simplify music rights management in the film industry. Developed under the European Blockchain Pre-Commercial Procurement initiative, the tool aims to facilitate negotiations and secure intellectual property rights.

Move ecosystem consolidation

Joining the Move ecosystem alongside platforms such as Sui (SUI) and Aptos (APT), IOTA aims to leverage the capabilities of MoveVM and become the first Layer 1 network to adopt this architecture.

The IOTA Foundation has launched a Move-based testnet with tools for developers, including a browser wallet extension and updated documentation, to demonstrate the potential of the upgrade.

The economic model underlying the proposed system introduces staking rewards and a dynamic token supply. According to the company statement, validators and delegates will earn newly minted IOTA tokens with an initial annual inflation rate of 6-7%, translating into a projected annual return of 10-15% for stakers.

This model aims to encourage network participation while maintaining fair tokenomies through mechanisms such as fee burning.

“This upgrade can significantly accelerate our adoption efforts by bringing programmability and full decentralization to IOTA. We believe this offering has the best chance of delivering value to the IOTA ecosystem.”

Dominik Schiener, Co-Founder and President of the IOTA Foundation.

With the Rebase offering, IOTA aims to strengthen its position as a leading blockchain infrastructure by focusing on combining decentralized technology with practical, real-world applications.