IOTA

IOTA after Rebased: how the Move-based network and IOTA EVM fit together

IOTA now combines a Move-based Layer 1 with delegated proof of stake, object-centric assets and an EVM-compatible execution layer. The IOTA token pays for network activity, supports staking and participates in protocol governance, but the system also depends on validators, bridges, smart contracts and ecosystem applications.

A new Layer 1 foundation

IOTA Rebased replaced the previous mainnet architecture with a Move-based, object-oriented ledger. The Rebased mainnet went live in 2025 after IOTA token holders approved the upgrade in December 2024. The current codebase describes IOTA as an asset-oriented programming model powered by Move, while the project’s technical whitepaper presents the mainnet as a permissionless platform for applications, tokenized assets and decentralized finance.

The architecture treats assets as on-chain objects rather than as balances controlled only through contract storage. Objects may be address-owned or shared, with shared objects available to multiple users and applications. The whitepaper says this design supports parallel processing for transactions that do not conflict over the same objects, while transactions involving shared state pass through sequencing and consensus before execution. This distinction is central to how IOTA aims to increase throughput without making every transaction wait on a single global execution path.

Consensus, validators and staking

IOTA uses delegated proof of stake on the Rebased Layer 1. Validators run the network software, process transactions and participate in the committee that reaches consensus; token holders can delegate IOTA to validators and receive a share of staking rewards after validator commissions. The project’s whitepaper states that a validator candidate needs at least 2 million IOTA in delegated stake to request entry to the validator set, while an active validator whose stake falls below 1.5 million IOTA receives a seven-epoch grace period before removal.

The reward model introduces ongoing issuance rather than relying only on transaction fees. The whitepaper specifies up to 767,000 newly minted IOTA per approximately 24-hour epoch, with rewards distributed according to validator performance, commission and delegated stake. IOTA Improvement Proposal 8 adds a protocol-level guardrail against stake concentration by setting an effective minimum commission linked to a validator’s voting power, capped by the protocol’s 10% voting-power limit. These rules can change through future protocol upgrades, so staking yield should not be treated as a fixed property of the token.

What the IOTA token does

IOTA is the native asset of the Rebased network. It is used for transaction fees, storage deposits and delegated staking. Fees are partly burned, while storage deposits can be returned when the related storage burden is released. At the same time, protocol subsidies mint new tokens for validators and delegators. The result is a supply model with both issuance and burning: the project explicitly says there is no predefined maximum supply, although supply growth is designed to remain at most linear under its stated rules.

The Rebased migration began with 4.6 billion IOTA on the new mainnet, but the tokenomics document also describes scheduled unlocks and continuing epoch issuance. It projected that circulating supply would rise through September 2027 as locked tokens were released, in addition to new staking-related issuance. This means older supply figures should not be carried forward without checking the current mainnet records and unlock schedule.

The role of IOTA EVM

IOTA EVM is a separate EVM-compatible execution environment associated with the IOTA stack and designed to support Solidity applications and familiar tooling such as MetaMask and Hardhat. The official product page identifies it as an EVM smart-contract chain connected to IOTA, with a bridge for moving and wrapping assets between Layer 1 and the EVM environment. The page lists chain ID 8822 and the IOTA token as its token name, but users still need to distinguish the EVM environment from the Move-based IOTA Layer 1 when checking addresses, contracts and transaction activity.

This separation expands the developer surface but also adds dependencies. EVM applications may rely on bridges, decentralized exchanges, oracle providers, indexers, wallets and liquidity programs. IOTA has promoted integrations including LayerZero and oracle infrastructure, while its community approved a program allowing up to 172 million IOTA from an unclaimed-token pool to be used for ecosystem liquidity. That program can help bootstrap markets, but liquidity supplied through multisignature-controlled programs is an ecosystem policy choice rather than an inherent property of the base protocol.

Governance and upgrade control

IOTA governance has used token-weighted voting for major network and treasury decisions. The Rebased proposal described a binding vote with a 5% circulating-supply quorum, and the Foundation later reported that the upgrade received 98.37% of participating votes, with 7.52% participation. The IOTA Improvement Proposal repository provides a separate technical process: proposals move through draft, proposed and active states, and active proposals are those supported by the network.

Governance therefore gives IOTA holders influence over some protocol and treasury decisions, but it does not eliminate implementation or concentration risk. The Foundation, core developers, validators, proposal editors and major token holders all affect how changes are prepared, reviewed and adopted. The voting record also shows why headline approval percentages need context: a large majority of votes can coexist with relatively low participation.

Who the system is for

The practical audience is broader than holders seeking staking rewards. Move developers can build directly on the Layer 1 using object-based assets and shared objects, while Solidity teams can deploy through IOTA EVM and use established Ethereum development tools. The project also targets tokenization, identity, trade data and other applications that need programmable assets or a connection between on-chain records and real-world processes. These are intended use cases; the existence of the tooling does not by itself establish sustained user demand or commercial adoption.

For newcomers, the key distinction is between protocol capability and application traction. IOTA supplies the Layer 1, the Move execution model, staking and an EVM environment, but users still depend on application teams to provide safe contracts, useful markets, reliable data feeds and workable bridges. The official IOTA Explorer and EVM explorer are the appropriate starting points for checking network activity, validator information, objects, contracts and transaction histories rather than relying on a single token listing.

Key takeaways

• IOTA’s current Layer 1 is a Move-based, object-centric network secured by delegated proof of stake.
• IOTA is used for gas, storage deposits, staking and governance, but its supply is not capped and includes ongoing issuance.
• IOTA EVM provides a separate EVM-compatible environment for Solidity applications and depends on bridges and ecosystem infrastructure.
• Parallel execution applies mainly where transactions do not conflict over the same objects; shared-state applications still require sequencing and consensus.
• Governance is token-weighted and has been used for major upgrades and treasury programs, with participation varying by vote.
• The strongest test of the system is sustained application usage, not the presence of technical features alone.

Risks and open questions

• The token has ongoing issuance through epoch subsidies, while the balance between new issuance and fee burning depends on network activity and protocol parameters.
• Validator and staking concentration could weaken decentralization even with voting-power caps and commission rules.
• The EVM environment adds bridge, oracle, multisignature, smart-contract and liquidity dependencies that can fail independently of the Layer 1.
• Move and EVM applications remain exposed to contract-design errors, faulty upgrade logic, oracle failures and economic attacks.
• Governance outcomes may be dominated by large token holders, and low participation can make approval percentages difficult to interpret.
• The project’s intended use cases in tokenization, identity and trade do not establish adoption; independent usage data should be checked over time.