On May 5, IOTA plans to carry out its largest network upgrade by transitioning to the new Rebased protocol, which will provide full decentralization and smart contract support.
Full Decentralization and New Protocol
The upgrade involves a switch to a delegated Proof-of-Stake (DPoS) model, initially launching with 50 permissionless validator slots and plans to scale up to 150. This transition will facilitate the full shift of IOTA to decentralized consensus and prepare it for more complex applications and broader adoption.
Smart Contract Integration via MoveVM
The upgrade will enable the integration of smart contracts through MoveVM, making IOTA the third network after Aptos and Sui to offer such technology at Layer 1. The IOTA EVM will also be reactivated, operating alongside MoveVM.
Rewards for Stakers
With this upgrade, IOTA stakers will be able to earn rewards ranging from 10% to 15% annually. A new fee-burning mechanism and minimal adaptive transaction fees will also be introduced.
The transition to the Rebased protocol marks a significant step in enhancing the security, speed, and decentralization of the IOTA network while opening up opportunities for broader applications in various domains.
