What happened?
Iota, a Layer-1 blockchain, is set to launch a significant upgrade to its network called the “Rebased Protocol” on May 5, 2025. This upgrade will transition Iota from the Stardust network to a new and more advanced system, introducing features like the Mysticeti consensus protocol, high transaction throughput, and smart contracts with the Move programming language. The upgrade aims to make transactions faster, scalable, and more secure, positioning Iota as a trailblazer for offering Move-based virtual machines alongside networks like Sui and Aptos.
Who does this affect?
The Iota Rebased Protocol upgrade impacts several groups, including developers, businesses, and token holders. Developers can leverage new tools and capabilities to create sophisticated decentralized applications (dapps), while businesses benefit from reduced transaction costs through the IOTA Gas Station feature. Token holders are also affected, as this upgrade introduces staking rewards for the first time, encouraging active network participation and providing a potential return on investment.
Why does this matter?
The market impact of Iota’s upgrade is significant, as it positions the network to attract more developers, users, and institutional investors. By enhancing scalability, reducing transaction fees, and introducing staking rewards, Iota aims to compete more effectively with other blockchain platforms and promote real-world adoption. This could lead to increased demand for the Iota token, potentially affecting its price dynamics and market stability in the Web3 ecosystem.