Layer-1 blockchain IOTA is preparing for its most ambitious upgrade to date — the launch of the Rebased Protocol — scheduled for Monday, May 5, 2025.
The highly anticipated transition from the current Stardust network to the new IOTA Rebased network marks what the IOTA team is calling its “largest, most complex, and most important upgrade” since the project’s inception. Following a community vote and rigorous testing, Rebased will unlock a slate of features aimed at scalability, decentralization, and adoption — while introducing staking rewards for the first time in the project’s history.
What’s New in IOTA Rebased?
The Rebased upgrade will overhaul IOTA’s core protocol, implementing the following key features:
- Mysticeti Consensus Protocol: A high-performance, scalable mechanism delivering over 50,000 TPS and transaction finality in under 500 milliseconds.
- Move-based Smart Contracts on L1: With the integration of the Move programming language, IOTA becomes the third major blockchain after Sui and Aptos to deploy MoveVM on Layer 1. This will enable secure, composable, and resource-efficient dApps.
- Adaptive Fee System: Rebased will introduce minimal transaction fees via an adaptive fee-burning model, making the chain attractive for microtransactions and enterprise use cases.
- IOTA Gas Station: This tool will allow businesses and developers to pay transaction fees on behalf of users — enabling gasless UX and broader accessibility for dApps.
- Decentralized Proof-of-Stake (DPoS): The Rebased chain will debut with 50 validator slots, eventually expanding to 150+ permissionless validators, further decentralizing the network.
Initial validators include prominent institutions such as the IOTA Foundation, DLT Green, Twinstake, Stakin, Nansen, and Luganodes, among others.
Staking Comes to IOTA for the First Time
For the first time in its history, IOTA token holders will be able to stake their assets and earn rewards. This long-awaited feature not only increases the token’s utility but also empowers users to actively contribute to network security.
- Expected APY: 10% to 15%
- Participation: Open to all IOTA holders
- Mechanism: Delegation to validators within the new DPoS structure
The staking system will play a central role in securing the chain, rewarding long-term commitment, and attracting new retail and institutional participants.
Governance and Community-Backed Rollout
The Rebased Protocol was greenlit through a December 2024 governance vote, with strong support from IOTA’s community. The upgrade underwent intensive audits, technical reviews, and stress testing, ensuring that the migration meets institutional-grade reliability standards.
IOTA confirmed that Rebased will transition the chain to a Move-based object ledger, a fundamental shift in design meant to unlock next-generation smart contract applications.
Enterprise and Institutional Focus: Trade, Tokenization, and More
The IOTA Foundation states that Rebased is designed not just for developers and retail users, but for institutions and governments. The chain’s architecture supports enterprise-grade applications such as:
- Trade finance and tokenization platforms
- Supply chain tracking and logistics
- Digital identity infrastructure
- Stablecoins and on-chain orderbook DEXs
- DeFi and Web3-native financial tools
With its new architecture and staking mechanism, IOTA aims to onboard sovereign entities and major financial institutions to its ecosystem.
IOTA Market Update
At the time of writing, IOTA (MIOTA) trades at $0.1727, up 1% daily and 6% weekly. However, it remains down 29% year-over-year and 96.7% below its all-time high of $5.25 from December 2017.
Conclusion: A Pivotal Moment for IOTA
The launch of the Rebased Protocol is more than a technical milestone — it’s a strategic reinvention of the IOTA network. With high throughput, smart contracts, delegated staking, and enterprise tooling, IOTA is positioning itself for a new wave of adoption across both crypto-native and real-world use cases.
As the May 5 launch approaches, all eyes will be on how the market and developer ecosystem respond to what may be IOTA’s most transformative evolution yet.
