IOTA has unveiled its plans to strengthen its position in the blockchain industry with the introduction of a new ecosystem fund and a hard fork called “Stardust.” These initiatives are aimed at increasing the value of the MIOTA token and enhancing network security.
IOTA, which experienced a surge in popularity during the 2017 crypto bull run, has since faced challenges in maintaining its market traction. However, co-founder Dominik Schiener believes that the project is on the path to resurgence.
Central to IOTA’s revitalization plan is the launch of IOTA 2.0, which aims to enhance the utility of the MIOTA tokens. The planned upgrades include the integration of smart contracts, which will enable the development of more applications on the IOTA platform. This, in turn, will drive demand for Mana, IOTA’s node reputation system, and increase the demand for MIOTA.
In recognition of the growing importance of decentralized finance (DeFi), IOTA will also introduce layer 2 blockchains and DeFi applications. Additionally, the project will establish a new ecosystem fund powered by the release of new MIOTA tokens. This fund will support growth and innovation within the IOTA ecosystem.
The Stardust hard fork, scheduled for October 4th, will lay the foundation for these improvements and pave the way for the full launch of IOTA 2.0 in the fourth quarter of the year. A hard fork refers to a protocol alteration that renders previous versions obsolete.
To further nurture innovation, IOTA will initiate an ecosystem fund, recognizing the significance of developer engagement. This fund aims to support projects and innovations on the platform and counter the trend of other blockchains introducing their own incentive funds.
Schiener emphasizes the importance of these initiatives in securing IOTA’s position in the competitive crypto market. He believes that adequate funding is essential to prevent a decline in market share.
Following the hard fork, a bi-weekly token release is expected over a period of four years, resulting in an average yearly inflation rate of approximately 12%. At the end of this period, the circulating supply of MIOTA tokens is projected to reach around 4.6 billion.
Overall, these improvements and the introduction of the ecosystem fund and Stardust hard fork are part of IOTA’s strategy to reclaim its status in the blockchain industry and maximize the utility and economic activity of its network.