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IOTA Rebased Launches with Major Protocol Shift and Bold Revival Goals

IOTA launches its Rebased upgrade, shifting to SUI tech and replacing its core protocol. The move introduces smart contracts, 50K TPS capacity, staking, and decentralization via 13 validators. Firefly wallet is retired; users must migrate. Despite bold goals, including top 10 status, market response remains muted, with IOTA stuck near $0.20.

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IOTA is rolling out its Rebased upgrade. The process is expected to take several hours and will involve a fundamental protocol change. The upgrade raises hopes for a fresh start.

With the launch of IOTA Rebased, the long-established crypto project aims to open a new chapter. A so-called “Genesis Ceremony” was initiated.

Indeed, from now on, the mainnet will be technologically based on a copy of SUI, and IOTA is largely abandoning its own development work. The price curve has so far shown little interest in Rebased; with prices around $0.20, it has been stuck in a disappointing zone since the beginning of February.

Rebased was originally scheduled to go live in the first quarter of 2025, but a concrete launch date was only announced two weeks ago.

Important information for IOTA Rebased self-custody and wallet changes

The previous official IOTA wallet, Firefly, is being discontinued and replaced by a Chrome browser extension, which can be downloaded here. The popular Bloom Wallet will also no longer support IOTA Rebased, but Ledger hardware wallets are expected to be upgraded. Manual installation is only necessary for the outdated Ledger Nano S. You can find practical instructions on how to upgrade your wallet to IOTA Rebased here .

IOTA Rebased solves challenges that the foundation couldn’t overcome on its own. With an initial 13 validators, IOTA is embarking on a path toward decentralization; the central coordinator in the previous Tanglenet was a thorn in the side of the crypto community. The protocol switch to SUI technology will also enable IOTA to process smart contracts on the mainnet for the first time, which are processed via MoveVM. Rebased is expected to handle 50,000 transactions per second, making it future-proof.

IOTA staking is a double-edged sword due to inflation

Also new is the option to deposit IOTA for staking. 10 to 15 percent annual interest is advertised for this. However, investors should carefully calculate whether such deals are really worthwhile. IOTA Rebased also brings with it annual inflation of 6 to 7 percent, which will be added to the inflation hammer of 2023. Previous promises never to change the original total of just under 2.8 billion IOTA have proven worthless.

In the summer of 2024, an attempt was made to open up new application areas in decentralized finance (DeFi) with the IOTA EVM. However, this initiative failed to meet the hoped-for response. Data from DeFiLlama shows that only $20 million of capital is currently circulating in the IOTA EVM. By comparison, SUI and its MoveVM currently have a TVL of $1.8 billion.

Conclusion: IOTA Rebased becomes reality – will the trend reversal succeed?

The Foundation CEO Dominik Schiener has set a goal of returning to the top ten cryptocurrencies by capitalization. To achieve this, IOTA Rebased would need to achieve a market capitalization of over $20 billion; it currently stands at just under $800 million.

In other words: To compete with top ten altcoins like Cardano (ADA) or Dogecoin (DOGE) on equal footing, IOTA’s price curve would have to rise above $6, also breaking all-time highs from late 2017, when IOTA was listed above $5 for the only time in its history. Today, however, even critics will keep their fingers crossed that the upgrade to Rebased runs smoothly and that problems don’t stall a fresh start right from the start.

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Sharon Harris is a feminist and a part-time nomad. She reports about businesses primarily involved in tech, CBD, and crypto. She started her career as a product manager at a Silicon Valley startup but now enjoys a new life as a personal finance geek and writer. Her primary aim is to provide readers with a new perspective on the overlapping world of finance and technology.