The IOTA network, first launched in 2015, has spent nearly a decade navigating the evolving blockchain landscape. Initially designed as a distributed ledger technology (DLT) for Web2 transaction settlements, IOTA has since evolved into a forward-thinking Layer 1 blockchain with ambitious goals—particularly in the rapidly growing Real-World Assets (RWA) market. After forming strategic partnerships with institutions including the European Union and the United Arab Emirates, and overcoming past challenges such as wallet vulnerabilities and network outages, IOTA is now poised for a major transformation.
In late 2024, the IOTA Rebased initiative marks a pivotal turning point. With the launch of IOTA EVM in May 2024 and the planned integration of Sui’s MoveVM in 2025, IOTA is transitioning toward a MultiVM architecture—a bold move aimed at enhancing scalability, security, and developer flexibility. This shift positions IOTA as a serious contender in the next generation of blockchain infrastructure, especially for tokenized assets and enterprise-grade applications.
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Why MoveVM? The Strategic Shift to a Modern Virtual Machine
At the heart of IOTA’s transformation is its decision to adopt MoveVM, the virtual machine originally developed by Mysten Labs for the Sui blockchain. In its official IOTA Rebased blog post, the team stated:
“After evaluating various smart contract solutions for IOTA L1, our internal research concluded that MoveVM is the most technically suitable fit for IOTA’s DAG-based ledger.”
This isn’t a random choice. The Move programming language was designed with security, resource ownership, and parallel execution in mind—critical features for high-performance blockchains handling complex financial instruments like tokenized bonds, real estate, or commodities.
Among the Move ecosystem—comprising Aptos, Sui, and newer entrants like Movement—IOTA specifically highlighted Sui’s implementation as the most aligned with its technical vision. The reasons are clear:
- Parallel Transaction Processing: MoveVM enables concurrent execution of transactions, which aligns perfectly with IOTA’s parallelized Directed Acyclic Graph (DAG) structure.
- Enhanced Security Model: Move’s linear typing ensures that digital assets cannot be duplicated or accidentally destroyed—ideal for RWA compliance and auditability.
- Developer-Friendly Design: With formal verification support and intuitive syntax, Move lowers the barrier to entry for enterprise developers building regulated financial applications.
By integrating MoveVM at the Layer 1 level, IOTA avoids the limitations of Ethereum Virtual Machine (EVM)-only chains and instead builds a native foundation for scalable, secure asset tokenization.
Performance Leap: What’s New in IOTA Rebased?
The upcoming upgrades under IOTA Rebased aren’t just about changing virtual machines—they represent a complete overhaul of performance, economics, and user experience.
1. High Throughput & Instant Finality
Powered by the Mysticeti consensus protocol, IOTA aims to achieve:
- Over 50,000 transactions per second (TPS)
- Sub-second finality, making it one of the fastest L1s in the industry
This performance is essential for real-time settlement of RWAs, where delays can undermine trust and regulatory compliance.
2. Decentralized & Permissionless Infrastructure
Unlike some DAG-based systems that rely on centralized coordinators, IOTA Rebased will operate as a fully decentralized network using:
- A Delegated Proof-of-Stake (DPoS) model
- 150+ permissionless validator nodes, ensuring censorship resistance and broad participation
This strengthens network integrity while enabling global stakeholders to participate in governance and staking.
3. Sustainable Tokenomics & User Incentives
To support long-term adoption, IOTA is redesigning its economic model around sustainability and inclusivity:
- Staking rewards of 10–15% APY for IOTA token holders
- A flexible fee-burning mechanism to balance inflation and deflation
- Transaction sponsorship, allowing dApps to cover gas fees for users—removing friction during onboarding
These features make IOTA particularly attractive for institutional use cases where cost predictability and user experience are paramount.
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Targeting the RWA Market: Where IOTA Stands Out
Real-World Asset tokenization is one of the most promising frontiers in blockchain finance. From government bonds to private equity, trillions of dollars in traditionally illiquid assets are being brought on-chain. IOTA’s focus on enterprise-grade infrastructure gives it a competitive edge.
For example, recent developments like the UAE’s first tokenized U.S. Treasury bills—launched via Realize T-BILLS—highlight growing institutional demand for secure, compliant blockchains. IOTA’s combination of:
- High throughput
- Formal verification via Move
- Low-latency settlement
…makes it an ideal candidate for hosting such regulated financial instruments.
Moreover, because IOTA’s DAG architecture inherently supports feeless microtransactions (with optional sponsored transactions), it can also serve non-financial use cases like supply chain tracking, IoT data logging, and identity verification—further expanding its RWA applicability beyond pure finance.
MultiVM Vision: Preparing for a Heterogeneous Future
While the initial phase focuses on integrating MoveVM, IOTA’s long-term vision includes a MultiVM architecture, allowing multiple virtual machines (including EVM and potentially others) to coexist natively on Layer 1.
This hybrid approach offers significant advantages:
- EVM compatibility ensures existing Solidity developers can build on IOTA with minimal friction
- MoveVM support attracts next-gen builders focused on security and performance
- Future extensibility allows integration of new VMs as they emerge
Such flexibility ensures IOTA remains adaptable in a rapidly changing ecosystem—avoiding vendor lock-in while maximizing interoperability.
Frequently Asked Questions (FAQ)
Q: What is IOTA Rebased?
A: IOTA Rebased is a comprehensive upgrade to the IOTA network, introducing a new consensus mechanism (Mysticeti), EVM support, and plans to integrate Sui’s MoveVM. It transforms IOTA into a high-performance, decentralized Layer 1 blockchain optimized for real-world asset tokenization.
Q: Why is IOTA adopting MoveVM instead of sticking with EVM?
A: While EVM supports broad developer reach, MoveVM offers superior security, parallel execution, and formal verification—critical for handling high-value, regulated assets. By supporting both (via MultiVM), IOTA balances innovation with compatibility.
Q: When will MoveVM be live on IOTA?
A: The integration is planned for 2025, following the successful launch of IOTA EVM in May 2024. The transition will occur gradually to ensure stability and developer readiness.
Q: How does IOTA compare to other RWA-focused blockchains?
A: Unlike general-purpose chains retrofitting RWA support, IOTA was built from the ground up with enterprise needs in mind—offering feeless transactions, high throughput, and native compliance tools. Its DAG structure and upcoming MoveVM integration make it uniquely suited for scalable asset tokenization.
Q: Can anyone run a node on IOTA Rebased?
A: Yes. The network will feature over 150 permissionless validator nodes using DPoS, allowing qualified participants to contribute to consensus and earn staking rewards.
Q: Is IOTA moving away from its original vision?
A: Not at all. While early versions focused on IoT and microtransactions, IOTA Rebased expands that vision—using the same scalable DAG foundation to power modern financial infrastructure. The core principles of feeless, fast, and secure transactions remain central.
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Final Thoughts: A New Chapter for a Veteran Blockchain
After nearly ten years of development, setbacks, and reinvention, IOTA is entering its most promising phase yet. The Rebased initiative isn’t just an upgrade—it’s a repositioning of IOTA as a foundational layer for the tokenized economy.
By embracing MoveVM, targeting RWA use cases, and building toward a MultiVM future, IOTA combines cutting-edge technology with practical utility. For developers, enterprises, and investors alike, this evolution opens new doors for secure, scalable, and compliant blockchain adoption.
As global institutions increasingly turn to on-chain solutions for asset management, IOTA stands ready—not as a newcomer chasing trends, but as a mature platform engineered for real-world impact.
Core Keywords:
IOTA Rebased, MoveVM, Real-World Assets (RWA), Layer 1 blockchain, Sui MoveVM, tokenized assets, MultiVM architecture