IOTA Plans Resurgence with Network Upgrades and New Fund
IOTA, a once-prominent crypto project, is making a comeback with a series of initiatives to enhance its network development and token value. The project aims to regain market share lost to newer blockchains after a hype-driven rally in 2017. According to CoinDesk, IOTA is set to launch IOTA 2.0, an upgraded network that will introduce smart contracts, layer 2 blockchains, and decentralized finance (DeFi) applications.
Introducing a General-Purpose Virtual Machine
The implementation of smart contracts on the IOTA network will involve the use of a general-purpose virtual machine (VM). This move is expected to generate more demand for the project’s native token, MIOTA. The introduction of Mana, a reputation system for nodes within the IOTA network, will also play a crucial role in enhancing security and driving demand for applications and layer 2 networks.
New Ecosystem Fund to Support Development
IOTA co-founder Dominik Schiener has highlighted the need for funding to compete and grow in the cryptocurrency market. To incentivize developers and teams to build on the network, IOTA plans to establish an ecosystem fund backed by the gradual release of new MIOTA tokens. Following a hard fork called Stardust, there will be a temporary bi-weekly token release over four years, resulting in an average annual inflation rate of 12%. The circulating supply of MIOTA is projected to reach 4.6 billion tokens after this period.
The Tangle: IOTA’s Unique Network
IOTA differentiates itself from traditional blockchains by utilizing a Directed Acyclic Graph (DAG) called the “Tangle.” Originally positioned as a platform for low-cost “machine-to-machine” (M2M) microtransactions, IOTA is now expanding its capabilities with the introduction of IOTA 2.0 and the new ecosystem fund.
Hot Take: IOTA’s Rebirth Signals a Strong Future
IOTA’s strategic plans to upgrade its network and establish a new ecosystem fund demonstrate its commitment to staying competitive in the crypto market. By introducing smart contracts, layer 2 blockchains, and DeFi applications, IOTA aims to attract developers and drive demand for its native token. With these initiatives, IOTA has positioned itself for a strong resurgence, signaling a promising future for the project.
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