IOTA Aims for Crypto Dominance: Ambitious Network Enhancement Initiatives Unveiled
IOTA is on the brink of a substantial resurgence, implementing a series of strategic moves aimed at rejuvenating its network and boosting the value of MIOTA tokens. Once a dominant figure in the cryptocurrency landscape during the 2017 bull market, IOTA has witnessed a gradual decline in its market share over time. However, co-founder Dominik Schiener has unveiled plans to introduce IOTA 2.0 and enhance the functionality of MIOTA tokens in the near future.
The upcoming upgrades involve a restructured network that incorporates smart contracts, a heightened focus on layer 2 blockchains, and the adoption of decentralized finance (DeFi) applications. Additionally, there are initiatives for establishing a new ecosystem fund and enhancing the utility of MIOTA.
The impending IOTA ecosystem fund will be reinforced by the controlled release of new MIOTA tokens. The Stardust hard fork, slated for deployment on October 4th, will lay the technical foundation for IOTA 2.0, which is scheduled to go live in the final quarter of this year. A hard fork constitutes a modification to a blockchain protocol that renders previous versions obsolete.
IOTA's venture into smart contracts will be facilitated through a versatile virtual machine (VM) tasked with executing these contracts. Applications built on IOTA through these advanced smart contracts will drive a surge in demand for Mana, a reputation system for nodes within the IOTA network. This, in turn, will heighten the demand for MIOTA.
A representative from IOTA emphasized, "This self-sustaining economic system is crucial for enhancing the security of the IOTA network and, in turn, fostering greater demand for applications and layer 2 networks to be built on IOTA."
The Mana reputation system will incentivize contributors to the network, including those who add value through development efforts. Developers argue that an increase in the monetary value of MIOTA directly fortifies the security of the entire network, creating a positive feedback loop.
Ecosystem Fund to Seed Projects
In an effort to motivate developers and teams working on the network, IOTA is set to establish an ecosystem fund. This move aligns with other blockchains that have initiated similar funds to catalyze activity. Schiener emphasized the imperative need for increased funding to reverse the trend of diminishing market share and market capitalization, stating, "We aim for IOTA to have a fighting chance to thrive in this market."
Following the hard fork, there will be a temporary bi-weekly token release spanning four years, after which the total supply will be exhausted. This four-year release plan will result in an average annual inflation rate of 12%. Consequently, the circulating supply of MIOTA will culminate at 4.6 billion tokens.
Additionally, the network has established the Tangle Ecosystem Association in Zug, Switzerland, and the IOTA DLT Foundation in Abu Dhabi, UAE, to provide support for the IOTA ecosystem, as indicated by statements from the developers.