The last quarter of 2024 was marked by intense activity across all departments of the IOTA Foundation, not least because of the massive implications of the IOTA Rebased protocol update. With the proposal accepted by a community vote towards the end of the year, all eyes are now on the evolution from the current Rebased Testnet to the Mainnet release in 2025. In the meantime, let’s catch up on the work of the IOTA Foundation‘s teams.
Research & Development
In Q4 2024, the milestone work on IOTA Rebased was supported by focused efforts across all R&D teams to align infrastructure, tooling, and developer resources.
The Core Protocol team achieved significant milestones by cleaning up deprecated code, stabilizing tests, and addressing technical debt, culminating in the successful public Testnet launch.
Initial progress was made on tokenomics-related implementations, such as burn-slash rewards and fixed base fees, though refinement and integration into the broader system continue. The Consensus team advanced the Starfish protocol (the working name for our improved consensus mechanism), implementing and testing key components in the testbed, with further optimizations and validations planned for the months ahead.
Protocol research made headway in analyzing transaction data flow and developing strategies for improved decentralization and efficiency. As the team transitions into 2025, the focus remains on delivering these upgrades, ensuring a seamless path toward a stronger and more scalable network.
L1 Smart Contracts: Highlights of the quarter included achieving 100% test coverage for JSON-RPC endpoints, resolving critical bugs in the indexer and CLI, and deploying the Kiosk package on the Testnet, complemented by improved documentation. The IOTA Move VSCode Plugin was finalized for release, marking a significant step in enhancing the developer experience.
The team also advanced the implementation of a custom Stardust indexer, a pivotal development for migrating the current Mainnet ledger onto IOTA Rebased. Progress continued on features such as genesis delegation and address swap logic, ensuring alignment with Mainnet objectives. Additionally, research efforts into blockchain naming services and gas station solutions further enriched the ecosystem‘s technical infrastructure.
L2 Smart Contracts / ISC: Key milestones included implementing the gas concept, refining the Consensus module, and advancing the integration of the cmt_log component, essential for chain startup and block anchoring. These advancements enable ISC to function seamlessly on the IOTA Rebased network.
The team resolved over 900 test cases across multiple layers, including the VM, EVM, and core components, significantly improving development stability. Wasp v1.5.1 was deployed to the Mainnet, introducing new EVM JSON RPC functionality and the prestate tracer for enhanced debugging. The Solo framework was updated to simulate execution cycles with L1 connectivity, further aligning ISC components with the new protocol.
As Q4 concluded, the team focused on completing remaining tests, refining single-node configurations, and ensuring that Consensus and VM components are fully compatible with IOTA Rebased.
Developer Experience: In Q4 2024, the Developer Experience (DevX) team focused on improving documentation, tutorials, and developer tools to facilitate Move adoption and enhance overall usability. Significant achievements included updating documentation for the Testnet launch, publishing Move tutorials, and implementing interactive Capture the Flag (CTF) challenges to provide engaging learning experiences for developers.
The team introduced automated reference generation by network, completed the documentation for IOTA Identity Rebased, and updated guides for running a node. Progress was also made on new Discord bots to improve community engagement and support. TypeScript SDK documentation was also updated and new TypeDoc references were added to ensure alignment with v0.3.0.
Looking ahead, the team aims to refine tutorials, complete outstanding documentation updates, and establish a developer support workflow.
Tooling
During Q4 2024, the Tooling team delivered key advancements to prepare IOTA tools for production readiness. The IOTA Explorer, Wallet, and TypeScript SDK were successfully released, with full feature sets and complete test coverage. The Wallet Dashboard dApp progressed significantly, incorporating features like time-locked staking, stardust migration, and vesting schedule support, bringing it closer to an internal release.
Development on the EVM Bridge also saw substantial improvements, focusing on code robustness and Testnet deployment readiness. Post-Rebase challenges were efficiently managed, ensuring CI pipelines remained stable and tooling products aligned with updated Rust crates. Additionally, dark mode support for the Wallet and Explorer enhanced user experience and accessibility.
Heading into 2025, the team will prioritize finalizing the Wallet Dashboard, further strengthening the EVM Bridge, and rolling out new releases to continue driving IOTA’s ecosystem forward.
DevOps
In Q4 2024, the DevOps team focused on stabilizing and expanding IOTA’s network infrastructure. The successful deployment of the Testnet and Devnet marked a significant milestone, accompanied by the introduction of CheckMK monitoring and a streamlined setup process for external validators. Further enhancements included transitioning Postgres databases to resizable cloud volumes and incorporating automated ZFS snapshot backups into infrastructure deployment.
Heading into 2025, priorities include further optimizing deployment processes, expanding backup and monitoring capabilities, and continuing to support the growing validator ecosystem
Product Adoption
Formerly known as Technology Adoption, the Product Adoption department has been reimagined to demonstrate that public Distributed Ledger Technology can solve real-world challenges far beyond the speculative projects often seen in the crypto space. While early adoption efforts focused on private or permissioned pilots, the department’s updated approach emphasizes delivering reusable, industry-agnostic products to support the development of applications on the L1 IOTA Mainnet. By refining IOTA products, collaborating with external builders, and supporting tangible, mark,et-tested use cases, the department aims to prove the practical utility of public DLT, addressing real business, governmental, and societal needs. Stay tuned in Q1 2025 for a detailed blog post covering the evolution, structure, and ambitions of the Product Adoption department.
Trust Framework: The Identity Team has expanded in both scope and resources, becoming the Trust Framework Team. In this time frame, the team achieved a successful launch of the first version of IOTA Identity for IOTA Rebased in the Rust programming language. They plan to deliver JavaScript/WASM bindings in the next phase, as well as develop additional products within the Trust Framework with more details expected in the coming months.
Operations: Meanwhile, the team made significant progress in developing a structured framework for evaluating and managing collaborations to ensure alignment and achieve high-impact outcomes, with detailed progress below. Looking ahead, they are preparing a campaign for early 2025 to invite companies and innovators to explore collaboration opportunities with IOTA. Organizations already interested in collaborating with IOTA can fill out the partnership form or contact the team directly at [email protected].
Collaborations
Impierce: Specializes in organizational identities and credentialing solutions for the education sector, emphasizing Self-Sovereign Identity (SSI).
Achievements: Reached significant milestones aligned with partnership objectives, demonstrating tangible progress in development efforts.
Orobo: A digital solutions platform that enhances sustainability and promotes circular economy practices across various industries through Digital Product Passports (DPPs).
Progress: Advanced towards Mainnet utilization with ongoing collaboration to support their post-Tenity roadmap.
ETO Gruppe: Integrating IOTA into smart manufacturing and IoT applications.
Milestone: Officially joined as an IOTA partner, marking a significant step in driving adoption within industrial ecosystems.
Filancore: Developing decentralized identity solutions to enhance security and interoperability in IoT environments.
Collaboration Strengthened: Engaged in ongoing discussions to explore the further integration of their identity solutions within the IOTA ecosystem.
The Trade Logistics and Information Pipeline (TLIP)
In Q4, the Trade and Logistics Information Pipeline made significant progress in advancing integrations with Kenyan government agencies responsible for vital trade documents. Most significantly, TLIP reached a major milestone by bringing the KenTrade (Kenya’s Single Window system) node into full operation. Moreover, TLIP deepened its engagement with the Kenya Ports Authority, working to enhance container movement visibility for exporters and importers–another key initiative aimed at fostering efficiency and transparency in trade. Q4 was also a showcase of TLIP’s growing influence, with highlights from three major events:
- Africa Customs & Trade Conference, Nairobi, October: Hosted by our partner, the Kenya Revenue Authority (KRA), this gathering of 54 revenue authority heads, trade experts, and tech providers highlighted TLIP’s role in a digitally connected Africa. As an official sponsor, IOTA showcased TLIP as a transformative enabler of digital trade.
- World Customs Organization Technology Conference, Rio de Janeiro, November: At this event attended by 1,300 stakeholders from 117 countries, including customs officials and technology innovators, KRA presented TLIP’s capabilities to improve customs and trade efficiency.
- Africa Trade Development Forum, Kigali, December: TLIP’s importance in fostering trust and transparency in African trade placed it at the centre of the event, co-hosted by the Rwandan Ministry of Trade and Industry and TLIP’s founding partner, TradeMark Africa. A packed demonstration session and panel discussion emphasized TLIP’s impact, with leaders like Prof. Dominic Vey, TradeMark Africa Board Member and Honorary Consul of Namibia to Wales, commending its contributions to trade transformation.
Ecosystem Department
Q4 of 2024 has been an important and preparation-intense quarter for the IOTA ecosystem department, marked by steady progress and growth. The launch of iotalabs, a separate brand catering to ecosystem development, at the end of Q3 and its consequent setup in Q4 is a key step in driving innovation and supporting projects across the network.
The successful rollout of the IOTA liquidity program helped propel IOTA EVM to new heights, with TVL surpassing $100M at its peak, solidifying its position as a top 50 chain.
As the Ecosystem Department has been preparing for exciting upcoming campaigns and community-focused changes aimed at growing, engaging, and incentivizing the IOTA community, they are looking forward to an engaging first quarter in 2025. With the introduction of IOTA Rebased, the IOTA ecosystem will continue to build and scale.
IOTA Governance : IOTA token holders approved the IOTA Rebased Governance proposal with a large majority (98.37%) of participating votes. This essential governance decision was crucial for the rollout of IOTA Rebased as the next protocol version of IOTA.
iotalabs and events: The successful launch of iotalabs in Q3 2024 sparked a big interest in ecosystem builder collaboration and renewed interest in IOTA. The iotalabs team sought to capitalize on this with continued engagement on social channels by creating and publishing over 200 posts on X, with more in planning. With over 600,000 impressions and over 37,000 impressions thus far, the team plans to build on this momentum to keep the conversation around IOTA going.
Legal & Regulatory Affairs
The Legal and Regulatory Affairs Department has participated in regulatory work with key regulators across the world this quarter, with:
Regulatory Engagements: Legal and Regulatory Affairs organized bilateral meetings with European regulatory authorities to contribute to the development of the DeFi report mandated under Article 142 of MiCAR. These discussions focused on staking, MEV (Miner Extractable Value), and emerging DeFi activities.
The department participated in the Blockchain4Europe Annual Summit held in December 2024. Additionally, they concluded their involvement in the European Blockchain Sandbox, contributing to the drafting of a best practices report. This report summarizes regulatory observations and insights gained from the sandbox’s meetings. The 2024 best practices report is set for publication in 2025.
Consultations: Legal and Regulatory Affairs submitted a response to the European Supervisory Authorities’ (ESAs) consultation on draft guidelines under Article 97 of Regulation (EU) 2023/1114, offering recommendations on crypto-asset classification frameworks. The response is publicly available here. Feedback was also provided on the Draghi Report on European competitiveness, highlighting the transformative role of distributed ledger technology (DLT) in enhancing European competitiveness.
Furthermore, the department participated in the FATF’s public consultation, advocating for balanced anti-money laundering (AML) and counter-terrorist financing (CFT) frameworks that promote financial inclusion. A consultation response was submitted to the Monetary Authority of Singapore regarding the regulatory framework for Digital Token Service Providers.
Collaboration with Industry Organizations: Legal and Regulatory Affairs actively supported the International Association for Trusted Blockchain Applications (INATBA) in its initiatives related to staking, tokenization, and AML/CFT rules. They also contributed to the development of a self-regulation proposal for DeFi, focusing on risk mitigation and compliance. In addition, the department collaborated with the German Blockchain Association (Bundesblock) to advance regulatory efforts in Germany and across Europe.
Communications and Social Media: This quarter, the Communications Team created and published over 600 posts across X, Instagram, LinkedIn and Reddit. Organically, this generated over four million impressions, as well as 73,000 engagements, a 50% and 25% increase from the previous quarter respectively. This was in large part due to extensive content created around the IOTA Rebased Proposal (of which the announcement post was this quarter’s top performing, seen by over 580,000 accounts).
Meanwhile, marketing efforts generated by TEA-funded X-ads yielded more than 20 million impressions, about 80,000 engagements, and about a quarter million video views.
Outlook
We plan to release IOTA Rebased on the Mainnet for the upcoming quarter, accompanied by production-grade versions of all tooling and documentation. We expect our first growth initiatives to kick off, relating to our DevEx initiatives, as well as establishing collaborations with the first set of builders for the new IOTA Rebased Mainnet regarding real-world adoption driven by our Product Adoption team and the DeFi space driven by our Ecosystem team.
We’re eager to witness the first developments and dApps released on the new IOTA Rebased Mainnet. If you are as well, get in touch with our various teams and working groups on Discord or follow us on X/Twitter.
