The IOTA Foundation has officially launched the Rebased mainnet upgrade, marking one of the most significant milestones in the project’s history. This transformative update redefines IOTA’s technological foundation, establishing it as the world’s first dual smart contract ecosystem with Layer 1 MoveVM support and Layer 2 EVM compatibility. With this advancement, IOTA positions itself at the forefront of blockchain innovation, ready to power real-world applications at scale.
A Bold Step Toward Decentralization and Scalability
Since its inception in 2015, the IOTA Foundation has been committed to building a decentralized, scalable, and secure distributed ledger technology (DLT). Early iterations of the network relied on a centralized Coordinator to ensure network integrity—a temporary measure designed to evolve into full decentralization. The long-term vision, known as IOTA 2.0 (Coordicide), aimed to eliminate this dependency and achieve true autonomy.
However, as blockchain development accelerated, so did the need for more immediate and impactful upgrades. The emergence of high-performance virtual machines like MoveVM—pioneered by Aptos and Sui—offered a new path forward. Recognizing the potential of Move’s security-focused, resource-oriented programming model, IOTA reassessed its roadmap.
Instead of progressing through multiple incremental changes under the original IOTA 2.0 plan, the team chose a decisive transformation: Rebased. This approach enables a single, powerful upgrade that delivers instant Layer 1 programmability while preserving long-term flexibility and network efficiency.
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Why Rebased Changes Everything
Rebased isn’t just an upgrade—it's a complete architectural reimagining. By rebuilding the main layer of the network, IOTA gains native smart contract capabilities without sacrificing performance or decentralization. This shift allows IOTA to maintain its core mission: creating tangible value through real-world use cases.
Unlike many networks that dilute their native assets across fragmented layers, IOTA strengthens the utility and economic model of its primary token. The upgraded network introduces several groundbreaking features:
- Over 50,000 TPS (transactions per second) throughput
- 500ms finality for near-instant transaction confirmation
- Dual smart contract environment: L1 MoveVM + L2 EVM
- Deflationary tokenomics via activity-driven token burning
- Up to 15% annual staking yields, dynamically adjusted based on total stake
These enhancements make IOTA uniquely positioned to support enterprise-grade applications across supply chains, digital identity, mobility, and government services.
Dual Smart Contract Ecosystem: The Best of Both Worlds
One of the standout innovations of the Rebased upgrade is the introduction of a dual smart contract architecture. At Layer 1, IOTA now supports MoveVM, making it the third major Layer 1 blockchain—after Aptos and Sui—to adopt this secure and efficient language. Move’s design prevents common vulnerabilities like reentrancy attacks and enables fine-grained control over digital assets.
Meanwhile, EVM compatibility remains fully functional at Layer 2, ensuring seamless integration for existing Web3 developers and dApps. This hybrid model allows developers to choose the best environment for their needs:
- Use MoveVM for high-security, high-throughput applications requiring native asset control
- Leverage EVM for rapid deployment of Ethereum-compatible smart contracts
This flexibility attracts both cutting-edge innovators and established projects looking for scalability without compromise.
Security and Decentralization Backed by Industry Leaders
To ensure robust network security and decentralization, IOTA has partnered with leading node infrastructure providers including LugaNodes, KILN, Twinstake, Ankr, and P2P.org. These organizations operate validator nodes across diverse geographic regions, reinforcing the resilience and reliability of the upgraded network.
As a pioneer of Directed Acyclic Graph (DAG) technology, IOTA has influenced next-generation blockchains like Aptos and Sui. With one of the largest R&D teams in the crypto space, the foundation continues to push boundaries in consensus mechanisms, privacy, and interoperability.
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Global Recognition and Real-World Adoption
IOTA’s commitment to compliance and real-world utility has earned it recognition from global institutions. Notably, it became the first DLT foundation officially registered in Abu Dhabi Global Market (ADGM)—a major step toward regulatory clarity and international legitimacy.
Beyond regulatory milestones, IOTA is actively shaping policy and innovation in Europe. Following the successful completion of the EU Blockchain Pre-Commercial Procurement Project, IOTA is now instrumental in driving digital transformation across public services and cross-border trade.
Collaborations with prestigious organizations such as the World Economic Forum, the UK Institute of Export & International Trade, and the Tony Blair Institute for Global Change highlight IOTA’s role in digitizing global supply chains and trade processes. These partnerships aim to create more transparent, efficient, and trustworthy systems for international commerce.
FAQs About the IOTA Rebased Upgrade
What is the Rebased upgrade?
Rebased is a comprehensive mainnet upgrade that introduces native Layer 1 smart contracts via MoveVM while maintaining EVM compatibility at Layer 2. It marks a strategic pivot from incremental upgrades to a unified, high-performance architecture.
How does Rebased improve scalability?
The upgraded network supports over 50,000 TPS with sub-second finality. Combined with parallel transaction processing and optimized consensus logic, Rebased enables massive scalability suitable for enterprise adoption.
Is IOTA still using DAG technology?
Yes. While Rebased enhances programmability, IOTA retains its foundational DAG-based Tangle protocol, which enables feeless transactions and high concurrency.
What are the benefits of MoveVM on IOTA?
MoveVM offers enhanced security through linear typing and asset-first programming. It prevents common smart contract bugs and supports safe digital asset management—ideal for financial systems and identity solutions.
How can developers get started?
Developers can access documentation, SDKs, and testnet environments through the official IOTA developer portal. Support is available for both Move and Solidity-based smart contract development.
Does Rebased affect token holders?
No disruption occurs for token holders. All existing $IOTA balances are automatically carried over to the new network. Staking rewards have increased due to improved economics and deflationary mechanisms.
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The Road Ahead: Building the Future of Practical Blockchain
With the Rebased mainnet live, IOTA enters a new era defined by practical utility, regulatory alignment, and global collaboration. The foundation continues developing future upgrades to further enhance speed, privacy, and cross-chain interoperability.
Backed by a vibrant developer community, institutional partnerships, and a clear vision for decentralized innovation, IOTA is no longer just a promising project—it’s a proven platform delivering results today.
As blockchain technology evolves beyond speculation toward real economic integration, IOTA stands ready to lead the transition into a decentralized, efficient, and trustworthy digital future.
Keywords: IOTA Rebased upgrade, MoveVM smart contracts, dual smart contract ecosystem, IOTA mainnet 2025, high TPS blockchain, deflationary tokenomics, Layer 1 scalability