IOTA Rebased: Strengthening Network Scalability and Sustainability with Transaction Fees
IOTA is significantly enhancing the sustainability and operational efficiency of its network by introducing transaction fees through the Rebased Protocol. This change is designed to provide incentives to validators who maintain the network while allowing for the processing of over 50,000 transactions per second.
Key Changes in IOTA Rebased
IOTA Rebased aims to improve the existing IOTA structure by simplifying its tokenomics and maximizing the network's scalability. Notably, the introduction of transaction fees stands out in this update.
Previously, IOTA operated without transaction fees, but the new model was introduced to consider the costs of maintaining the network and its scalability. The core goal is not merely to create a cost burden but to build a stronger and more stable ecosystem.
Why Are Transaction Fees Necessary?
IOTA emphasizes that this change represents a strategic decision for network sustainability rather than a mere increase in costs. Particularly with the rise in the use of real-world assets (RWA) and large-scale industrial use cases, the network anticipates long-term deflationary effects.
To illustrate this concept, IOTA used a highway toll system as an analogy.
🚛 “Just as large trucks pay higher tolls on the highway, large industrial use cases will pay higher fees. This ensures smooth transaction processing for everyday users.”
In other words, businesses and users executing large transactions will bear more costs, allowing average users to enjoy a more seamless network environment.
Benefits for Developers: Introduction of Sponsored Transactions
Along with the introduction of transaction fees, a positive change for app developers is also provided.
Through the Sponsored Transactions feature, developers can cover the transaction fees for users.
This feature allows users to access services without the burden of fees, while developers can offer a smoother user experience (UX).
This approach is expected to attract more projects and users to the network.
Transaction Structure in IOTA Rebased
IOTA Rebased categorizes transactions into two main types:
- User Transactions
- Transactions executed by regular users
- Includes asset transfers, smart contract executions, etc.
- System Transactions
- Transactions specifically for validators
- Plays an essential role in network operation and validation processes
Each transaction includes essential elements such as the sender's address, gas price, and maximum budget, with limits imposed on byte size and data payload size to prevent resource overload.
Future Schedule and Expected Outcomes
The IOTA Rebased Protocol is scheduled for migration to the mainnet in the first quarter of 2025.
Notably, according to the latest updates, it has been improved to allow the calling of up to 1,024 Move functions in a single transaction, signifying a higher level of programmability and decentralization.
With these changes, IOTA is now prepared to offer stronger network scalability and user experiences. Enterprises and large-scale users will be able to leverage blockchain functionalities in a more stable environment, while everyday users will benefit from a more seamless and efficient transaction environment.
- This text does not constitute investment advice or financial recommendations.Cryptocurrency investment involves significant risks, and the responsibility for investment decisions rests solely with the investor.
