• IOTA’s Rebased upgrade enhances decentralization, scalability, and security by introducing a Move-based ledger.
  • The new staking model allows token holders to delegate stakes to validators, ensuring network efficiency and fair rewards.

IOTA is set to redefine 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), and a revamped economic model designed for long-term sustainability.

IOTA was launched in 2015 and initially relied on a coordinator node that validates or approves transactions. Although this made the system secure, it required command centre control. The transition to the IOTA Rebased reduces the reliance on any single governing body because it is a fully decentralized and scalable system.

What Rebased Means for the Future

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

"With these features, IOTA is a sustainable, high-performance blockchain solution that supports real-world applications and developer innovation."

We are here for big things with IOTA, and Rebased is the catalyst. https://t.co/U26SoH1A3h

— Dominik Schiener (@DomSchiener) March 18, 2025

These changes provide security and programmability on the base layer, give token holders to transfer stakes to validators, and make transactions more efficient by shifting from the UTXO model.

Furthermore, new tokenomics offer staking rewards, burning of transaction fees, and an adaptive inflation rate to address the durability of the network’s economy. As Crypto News Flash previously reported, the IOTA Rebased update goes against the IOTA 2.0 initial plans, as it is based on an improved distributed ledger technology (DLT).

This redesign allows users to develop complex smart contracts and decentralized applications (dApps) on the network. The integration of Delegated Proof-of-Stake makes them more secure and efficient since it changes the way validators participate.

According to BlockHunters, by staking tokens, holders allow validators to perform transactions and protect the network. This enables token holders to vote in validators of their choice, making validators accountable in terms of performance.

IOTA’s Money Game

The Rebased upgrade also proposes a new economic model that changes the supply distribution and staking reward mechanism. Currently, $IOTA has shifted to a new model where 4.6 billion tokens have been migrated, and 767,000 new tokens are produced every epoch. A dynamic inflation rate means that it can last long, while transaction fee burning cuts down the total coin supply.

Validators and delegators are also rewarded fairly with a good system of compensating all the participants for their service. These tokens are also staked and cannot be taken away by these validators or any outside parties, providing the network with some level of reliability.

IOTA’s gas model is designed for affordability and sustainability. While computation fees further decrease the token supply, storage deposits can be fully refunded, encouraging the efficient usage of data. The gas price is self-regulating per epoch and averts spam buying, making the costs easily predictable. This makes the network handy and conceivable to them for management by the users and developers. At the time of reporting, IOTA is trading at $0.1807, reflecting a 1.20% increase in 24 hours.

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