IOTA Announces Rebased Protocol Upgrade for May 2025, Boosting Network Throughput by 50,000 TPS

IOTA, a prominent blockchain project, has announced its most significant mainnet upgrade to date, scheduled for May 5, 2025. This upgrade, known as the Rebased Protocol, marks a pivotal shift from IOTA's original centralized validation methodology to a fully decentralized, high-performance blockchain platform. The Rebased Protocol aims to address early design limitations, particularly the dependence on the central Coordinator node, by introducing decentralized consensus through permissionless validator nodes.

The Rebased Protocol will introduce several key features, including permissionless, delegated proof-of-stake (DPoS) validators and natively built-in staking features. The upgrade will initially deploy 50 permissionless validators, with plans to increase this number to 150 as adoption grows. This move democratizes on-chain transaction validation, allowing anyone with the necessary staking assets and technical capabilities to become a validator and participate in the network's governance.

One of the most anticipated aspects of the upgrade is the significant increase in network throughput. The IOTA Foundation has ensured that after the deployment of the Rebased Protocol, the network processing power will exceed 50,000 transactions per second (TPS). This level of scalability positions IOTA competitively with other high-speed Layer 1 chains, making it particularly suitable for use cases involving real-time data exchange, iot micropayments, and decentralized finance (DeFi).

In addition to enhanced scalability, the upgrade will introduce a native staking mechanism. Token holders will be able to stake their IOTA tokens with validators and earn staking rewards, thereby validating the network and contributing to its decentralization. This feature benefits long-term holders of IOTA by providing new avenues for passive income and increases community control over protocol upgrades and operational decisions.

The May update will also see the launch of smart contracts enabled by MoveVM, a virtual machine based on the Move language originally developed by Meta’s Diem project. MoveVM has been adopted by other blockchains like Aptos and Sui, and its integration into IOTA opens new use cases in DeFi, nft marketplaces, gaming, and tokenized asset systems. Developers will be able to deploy financial protocols and decentralized applications (dApps) directly onto IOTA’s feeless, high-speed network, further expanding its utility and appeal.

Prior to the upgrade, IOTA will initiate a mainnet migration phase leading up to May 5. Token holders will be able to stake IOTA tokens via official wallets, while validator candidates can enroll and configure their infrastructure. The Foundation will provide a comprehensive validator onboarding guide, public staking tutorials, and a network health monitor to ensure a seamless and inclusive transition to the upgraded mainnet.

Ask Aime: "Is IOTA's latest mainnet upgrade positioning it as a leading blockchain platform for IoT and DeFi?"

The Rebased Mainnet Upgrade is a central part of IOTA’s long-term strategy to evolve from its early IoT transaction network to a general Layer 1 infrastructure. Future milestones include scaling validator capacity to more than 150, enabling multi-asset token standards, and adding cross-chain interoperability solutions. These developments position IOTA to provide both enterprise and Web3-native applications, solidifying its role in the broader blockchain ecosystem.