The IOTA Foundation has unveiled an ambitious plan to rebase its Layer 1 protocol, marking a pivotal step toward full decentralization and advanced programmability. This transformative initiative, known as "Rebasing IOTA," aims to accelerate the network’s evolution by introducing cutting-edge features while empowering the community to shape its future through decentralized governance.
What Is the IOTA Rebase?
The IOTA Rebase represents a strategic overhaul of the network’s core architecture. Designed to fast-track the deployment of a new mainnet, this proposal could surpass the current IOTA 2.0 roadmap in terms of speed, scalability, and developer flexibility. Unlike incremental upgrades, the rebase is a comprehensive reset—leveraging lessons from nearly a decade of innovation to build a more robust, scalable, and intelligent blockchain infrastructure.
By rebuilding the foundation with modern virtual machines and enhanced consensus mechanisms, IOTA aims to position itself as a top-tier platform for enterprise-grade decentralized applications (dApps) and real-world digital asset integration.
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Key Features of the Proposed Rebase
The proposed rebase introduces several groundbreaking upgrades that could redefine IOTA’s capabilities:
- Dual Virtual Machine Support: The integration of both the Move Virtual Machine (MoveVM) and Ethereum Virtual Machine (EVM) enables developers to build smart contracts using familiar tools while benefiting from Move’s secure, resource-oriented programming model.
- Ultra-High Throughput: With a target throughput exceeding 50,000 transactions per second (TPS), the rebased network is engineered for mass adoption across high-frequency use cases like supply chain tracking, micropayments, and decentralized finance (DeFi).
- Native Staking Mechanism: For the first time, IOTA token holders will be able to stake their assets directly on Layer 1. This includes support for liquid staking tokens (LSTs), enhancing capital efficiency and incentivizing long-term participation.
- On-Chain Programmability: Smart contract functionality will be natively embedded into the Layer 1 protocol, eliminating reliance on secondary layers or sidechains and enabling seamless execution of complex logic.
These enhancements are not just technical improvements—they represent a fundamental shift in how IOTA interacts with developers, enterprises, and everyday users.
A Vision Built on Decentralization
Since its inception nearly nine years ago, IOTA has pursued a bold vision: creating a minerless, feeless, and fully decentralized distributed ledger. As a German non-profit foundation, it has consistently prioritized sustainability and real-world utility over speculative gains.
This mission has led to successful collaborations with governments, automotive manufacturers, energy providers, and logistics firms. Pilot projects in mobility data sharing, carbon credit tracking, and cross-border trade have matured into scalable solutions ready for global deployment.
The removal of the centralized coordinator node in 2023 via the Stardust upgrade was a landmark achievement—proving that a coordinatorless Tangle (IOTA’s DAG-based ledger) can operate securely and efficiently at scale.
Now, with full Layer 1 decentralization achieved, the focus shifts to programmability—the missing piece needed to unlock widespread institutional and developer adoption.
Why Programmability Matters
While decentralization ensures trust and censorship resistance, programmability enables innovation. By embedding smart contract capabilities directly into Layer 1, IOTA eliminates friction for developers who previously had to rely on external execution environments.
The addition of EVM compatibility in May 2024 was a major milestone, allowing Ethereum-native dApps to migrate seamlessly. Now, with MoveVM also on board, IOTA broadens its appeal to developers from ecosystems like Aptos and Sui—bringing enhanced security models and resource-efficient coding practices to the network.
This dual-VM approach positions IOTA as a truly interoperable platform—one capable of serving diverse developer communities while maintaining high performance and low operational costs.
Future Use Cases Enabled by the Rebase
The rebased IOTA network opens doors to transformative applications across industries:
- Tokenized Supply Chains: Digitally represent ownership and provenance of goods across global trade networks.
- Decentralized Exchanges (DEXs): Launch native DEXs with sub-second finality and near-zero fees.
- Stablecoins and CBDC Integration: Support for native stablecoins and potential integration with central bank digital currencies (CBDCs).
- Machine-to-Machine Economies: Empower IoT devices to autonomously transact value and data in real time.
These scenarios go beyond theoretical concepts—they reflect actual demands from enterprise partners already building on IOTA today.
Community Governance: Your Voice Matters
The future of IOTA now rests in the hands of its community. A governance vote scheduled for December 2, 2025, will determine whether the rebase proceeds or if development continues along the existing path.
Token holders are encouraged to participate actively. If approved, the new protocol will undergo rigorous testing on testnets, third-party security audits, and integration with major cryptocurrency exchanges before mainnet launch.
This democratic process underscores IOTA’s commitment to true decentralization—not just in technology, but in decision-making.
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Frequently Asked Questions (FAQ)
Q: What does “rebasing” mean for IOTA?
A: Rebasing refers to a fundamental reset of IOTA’s protocol architecture. It’s not a fork or token swap but a strategic rebuild aimed at improving scalability, security, and smart contract functionality—all while preserving the core principles of feeless transactions and environmental sustainability.
Q: Will there be a new IOTA token?
A: No. The rebase does not introduce a new token. Existing IOTA holders will retain their balances, which will be compatible with the upgraded network. Staking and enhanced utility will increase demand for the native asset.
Q: How does MoveVM improve security compared to other VMs?
A: MoveVM uses a resource-oriented programming model where digital assets are treated as unique resources that cannot be copied or accidentally deleted. This reduces common vulnerabilities like reentrancy attacks and improves overall code safety—making it ideal for financial applications.
Q: Can developers start building now?
A: Yes. Tools and documentation for both EVM and MoveVM are being released progressively. Developers can begin experimenting on testnets ahead of the mainnet rollout.
Q: Is the rebase environmentally friendly?
A: Absolutely. IOTA remains committed to sustainability. The rebased network will continue using a proof-of-stake consensus mechanism with minimal energy consumption—aligning with global ESG goals.
Q: What happens if the vote fails?
A: If the community rejects the rebase, IOTA will continue advancing under the current IOTA 2.0 framework. However, key innovations like native staking and dual-VM support may be delayed or implemented differently.
Final Thoughts: A New Chapter for IOTA
The proposed rebase is more than a technical upgrade—it’s a declaration of intent. By combining decentralization, high-performance scalability, and native programmability, IOTA is positioning itself as a foundational layer for the next generation of digital economies.
With strong institutional backing, proven real-world use cases, and an empowered community, the network stands at the cusp of mainstream adoption. The upcoming governance vote isn’t just about protocol design—it’s about shaping the future of decentralized infrastructure.
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