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Home»Blockchain»IOTA makes 4 key decisions with the Stardust upgrade
Blockchain

IOTA makes 4 key decisions with the Stardust upgrade

NBTCBy NBTC03/10/2023No Comments3 Mins Read
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IOTA has announced its four key decisions. These have come at a time when it is simultaneously introducing the Stardust upgrade. Making this interesting is the $IOTA tokenomics, which is set to evolve for the better.

The overall objective of IOTA is to expand the utility and token economies that are often represented as tokenomics. IOTA aims to maximize community case utility by doubling down on IOTA. These have been mentioned as bold decisions in the announcement, with most of the community welcoming it warmly. They have appreciated the team for making these decisions by saying that some decisions must be taken.

For starters, IOTA is looking to integrate general-purpose smart contracts. This will follow the launch of IOTA 2.0 to enhance programmability on Layer 1. IOTA has described this as a multi-year effort, details of which will be brought to light in the coming months.

Shimmer will continue to hold the status of a complementary staging network. It will hold on to the task of validating and expediting IOTA’s technical roadmap. The focus is on maximizing utility, tokenomics, and scalability.

There are a total of three elements undergoing development. First, an increase in network security. Second, greater economic value. Third, the need for more Mana. The initial driving force behind them is the increased demand for IOTA tokens. This is anticipated to increase the intrinsic value, thereby enhancing security and economic utility. The sustainable tokenomics model incorporates a component that aims to make IOTA real money within the ecosystem.

Having said that, the effect of this model is yet to be seen. The token is down by 3.23% in the last 7 days. It is currently exchanging hands at $0.150396, which is very far from the all-time high mark of $5.69. The IOTA price prediction is bullish, but they do not see the token reaching close to its highest value by the end of this decade. IOTA may again have to pull something bigger from the magician’s hat to turn the tables in its favor.

The third decision is to no longer develop and release the Assembly Token and Assembly Project. The focus would be on generalizing the framework of smart contracts by increasing efforts on the IOTA chain. Smart Contracts will hail the L2 blockchain on the network and assist in developing smart contracts dedicatedly for Layer 1.

Notably, testnet will be the priority before anything goes live on Shimmer and then IOTA. It will start with typical R&D to craft designs and specifications.

Finally, IOTA has decided to establish an Ecosystem Fund. It will aid in both the development of the ecosystem and the decentralization of the network’s governance. The fund will be financially supported through token inflation, which will endure for four years. During this period, the token supply is anticipated to reach 4.6 billion.

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