- The voting exercise for the IOTA Rebased Protocol kicks off today as the governance vote is expected to appear in the Firefly or Bloom wallet.
- A successful approval would bring several benefits to the IOTA ecosystem, including the increase in transaction throughput and the facilitation of the transition to a delegated Proof of Stake (dPoS) system.
The much anticipated IOTA’s (IOTA) Rebased Protocol will be subjected to governance voting starting today, December 2. As we reported earlier, the voting process will last for seven days. After this period, there will be another seven days of counting exercise where each IOTA token used in the vote accumulates voting power over time at a “rate of 0.01 votes per IOTA per milestone.”
[Governance] 🌀 #IOTA‘s Rebased proposal includes measures like staking rewards, fee-burning, & lower network fees—designed to create a sustainable, scalable ecosystem. Your vote shapes these potential changes. 🗳️ It starts tomorrow, Dec 2nd at 3PM! 🔗https://t.co/k1r4EUzMzc pic.twitter.com/gicpWaCSoP— IOTA (@iota) December 1, 2024
More About the IOTA Rebased Protocol’s Voting Process
According to IOTA, those who hold their tokens for the full counting period will have their voting power fully reached. If users stop voting earlier or only start voting after the counting phase, their voting power would proportionally decrease to the time they missed.
Researching into this, we discovered that the governance vote would be available in the Firefly or Bloom wallet. Also, a quorum of 5% of the circulation supply of the asset must be reached for the voting to be valid. In situations where the quorum of 5% is not achieved, the vote would be rendered invalid with a new process initiated. Meanwhile, the IOTA Foundation would ensure that the integrity of the process is fully upheld.
The IOTA Foundation, which is responsible for organizing, conducting, and overseeing the vote, ensures the integrity of the process. The node software automatically counts all votes, tracking and verifying the accumulation of voting power based on Tokens used per milestone. After the counting phase, community node operators are invited to verify and validate the final results before we publicly announce them.
What We Know About the IOTA Rebased So Far
The IOTA Rebased Protocol is expected to significantly shorten its marketing time and introduce programmability and full decentralization to the ecosystem. According to the official blog post, this initiative would, in the long run, create a sustainable value for its token holders and the ecosystem at large. Additionally, IOTA would be able to leverage its decade of experience in building important relationships with enterprises, governments, and regulators.
IOTA Rebased delivers this promise to IOTA and helps us achieve significantly faster time to market and maturity of our technology stack. It would allow us to scale up our adoption efforts and support our ecosystem to build a new wave of applications that drive significantly more value to IOTA.
With the Rebased, IOTA would be able to:
- Use its Digital Product Passports, which are currently being tokenized with NFT as a certificate and proof of origin. It would also serve as collateral in collateral-backed lending platforms.
- Successfully onboard stablecoins to be minted natively on the IOTA network. Usually, this requires a fully functional programmability on the L1, and the Rebased Protocol would do exactly that.
- Tokenized the value chain, which includes the tokenizing of physical assets and financial products such as invoices. In the long run, this would enable the creation of an entire trade finance system on IOTA.
- Enable the team at “Realize” to build a decentralized “on-chain order book DEX” since it requires the capability of the IOTA L1 to perform thousands of transactions per second and be fully programable. As we earlier disclosed, Rebased would increase the transaction throughput to more than 50,000 TPS.
At press time, IOTA was trading at $0.32 after surging by 14% in the last 24 hours.
