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IOTA Overhauls Vision with “IOTA Rebased” Transition
What This Means for Developers and Token Holders
November 27, 2024
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  • IOTA Rebased introduces asset migration, updated wallets, a new tokenomics model with inflationary staking rewards offset by fee burning, and EVM compatibility on Layer 1.
  • The vote on IOTA Rebased will run from December 2 to December 16, marking a pivotal moment in its evolution.

IOTA, one of the blockchain platforms famous for its Tangle technology, is now announcing a huge transition after releasing “IOTA Rebased.” IOTA Foundation Board member Lica Moser revealed this move in a recent Tangle Talk session. Moreover, it represents a strategic change to face all the previous struggles and strengthen the ecosystem for future times.

 

Everything About IOTA 2.0

Moser explained that the rationale for adopting “IOTA Rebased” was a practical one. He said, “IOTA 2.0 was designed for token transfers but struggled to support Layer 1 smart contracts. Making it work would have required costly modifications, protocol breaks, and years of delays.”

With this in mind, the Foundation had decided to fork SUI, a blockchain that already had demonstrated infrastructure, specifically for Move smart contractsreported CNF. The idea seems to promise faster deployment and fewer disruptions to developers.

The restructuring of the IOTA Foundation at the beginning of this year also paved the way for this transition. Merging Research and Development teams, the Foundation aimed to make cooperation better and come up with meaningful products. “Researchers and developers now work side by side,” said Moser, suggesting streamlined efforts to bring the vision of IOTA forward.

Between April and November 2024, developers transitioned from Go to Rust and worked extensively with SUI’s codebase to adapt it for IOTA. The team also ran a seven-month testnet for IOTA 2.0 to explore its potential, reported CNF. 

These developments occurred in a closed environment to avoid external pressures, but IOTA is now re-engaging its community through developer office hours, regular updates, and improved documentation for the Move programming language.

 

Features Of IOTA Rebased

Prominent characteristics of IOTA Rebased include asset migration from Stardust to the new platform, updated wallet and browser extension, and refreshed tokenomics model. The new design would introduce inflationary staking rewards that are balanced by burning transaction fees- the so-called “built-in deflationary mechanism,” as described by Moser. 

Moreover, EVM compatibility will be realized on Layer 1, thus catering to a more diversified set of developers and users. Governance remains a priority. The foundation will include on-chain voting and automated treasury management based on Move smart contracts.

Moser said the Foundation is evolving from theoretical perfection to practical innovation: “The focus is building real-world applications and partnerships.” The reaction of the community to the transition has been mixed. While some IOTA veterans raised concerns, the general crypto community praised the pivot.

Furthermore, the clear direction and the ecosystem improvements seem to move developers and researchers. Also, it’s important to note that the vote on IOTA Rebased is set to begin on December 2 and will be finalized by December 16. The success of the vote will be the beginning of a new chapter for IOTA; as Moser said, “IOTA is now in its strongest position ever.”

 

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The Great Onboarding: US Government Anchors Global Economy into Web3 via Pyth Network

For years, the crypto world speculated that the next major cycle would be driven by institutional adoption, with Wall Street finally legitimizing Bitcoin through vehicles like ETFs. While that prediction has indeed materialized, a recent development signifies a far more profound integration of Web3 into the global economic fabric, moving beyond mere financial products to the very infrastructure of data itself. The U.S. government has taken a monumental step, cementing Web3's role as a foundational layer for modern data distribution. This door, once opened, is poised to remain so indefinitely.

The U.S. Department of Commerce has officially partnered with leading blockchain oracle providers, Pyth Network and Chainlink, to distribute critical official economic data directly on-chain. This initiative marks a historic shift, bringing immutable, transparent, and auditable data from the federal government itself onto decentralized networks. This is not just a technological upgrade; it's a strategic move to enhance data accuracy, transparency, and accessibility for a global audience.

Specifically, Pyth Network has been selected to publish Gross Domestic Product (GDP) data, starting with quarterly releases going back five years, with plans to expand to a broader range of economic datasets. Chainlink, the other key partner, will provide data feeds from the Bureau of Economic Analysis (BEA), including Real Gross Domestic Product (GDP) and the Personal Consumption Expenditures (PCE) Price Index. This crucial economic information will be made available across a multitude of blockchain networks, including major ecosystems like Ethereum, Avalanche, Base, Bitcoin, Solana, Tron, Stellar, Arbitrum One, Polygon PoS, and Optimism.

This development is closer to science fiction than traditional finance. The same oracle network, Pyth, that secures data for over 350 decentralized applications (dApps) across more than 50 blockchains, processing over $2.5 trillion in total trading volume through its oracles, is now the system of record for the United States' core economic indicators. Pyth's extensive infrastructure, spanning over 107 blockchains and supporting more than 600 applications, positions it as a trusted source for on-chain data. This is not about speculative assets; it's about leveraging proven, robust technology for critical public services.

The significance of this collaboration cannot be overstated. By bringing official statistics on-chain, the U.S. government is embracing cryptographic verifiability and immutable publication, setting a new precedent for how governments interact with decentralized technology. This initiative aligns with broader transparency goals and is supported by Secretary of Commerce Howard Lutnick, positioning the U.S. as a world leader in finance and blockchain innovation. The decision by a federal entity to trust decentralized oracles with sensitive economic data underscores the growing institutional confidence in these networks.

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Pyth Network stands as tangible proof that this technology serves a vital purpose. It demonstrates that the industry has moved beyond abstract "crypto tech" to offering solutions that address real-world needs and are now actively sought after and understood by traditional entities. Most importantly, it proves that Web3 is no longer seeking permission; it has received the highest validation a system can receive—the trust of governments and markets alike.

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US Dept of Commerce to publish GDP data on blockchain

On Tuesday during a televised White House cabinet meeting, Commerce Secretary Howard Lutnick announced the intention to publish GDP statistics on blockchains. Today Chainlink and Pyth said they were selected as the decentralized oracles to distribute the data.

Lutnick said, “The Department of Commerce is going to start issuing its statistics on the blockchain because you are the crypto President. And we are going to put out GDP on the blockchain, so people can use the blockchain for data distribution. And then we’re going to make that available to the entire government. So, all of you can do it. We’re just ironing out all the details.”

The data includes Real GDP and the PCE Price Index, which reflects changes in the prices of domestic consumer goods and services. The statistics are released monthly and quarterly. The biggest initial use will likely be by on-chain prediction markets. But as more data comes online, such as broader inflation data or interest rates from the Federal Reserve, it could be used to automate various financial instruments. Apart from using the data in smart contracts, sources of tamperproof data 👉will become increasingly important for generative AI.

While it would be possible to procure the data from third parties, it is always ideal to get it from the source to ensure its accuracy. Getting data directly from government sources makes it tamperproof, provided the original data feed has not been manipulated before it reaches the oracle.

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