A Make-Or-Break Gamble For The IOTA Foundation

• The IOTA Foundation admitted that its decision to shift to Rebased protocol in November was a “make-or-break” move.
• In its year-review, the organization reflected on how its drive for innovation has resonated with its accomplishments in 2024.

A Suprise Shift from IOTA 2.0 to Rebased

IOTA has notably undergone radio silence on its project’s progress in the months leading to November. The lack of updates resulted in speculations and FUD (fear, doubt, uncertainty) in its future, particularly its scheduled shift to IOTA 2.0.

Dominik Schiener, the foundation’s co-founder and chairman, allayed worries by assuring the crypto community they’re on track with their targets. He also hinted at a major announcement coming their way.

In a major swerve, IOTA unveiled its pivot to the Rebased protocol instead of its initial 2.0 version goal. Surprisingly, investors met the announcement with renewed optimism. The event heavily contributed to its token’s rise to $0.6265 by the start of December 2024, its highest price so far since May 2022.

Although its rally last month failed to significantly narrow the gap from its all-time high of $5.69 seven years ago, it sparked optimism about its potential to reach the $1 mark in 2025.

IOTA Rebased

IOTA justified its “make-or-break” decision to forego the 2.0 protocol in favor of Rebased as a vast improvement from the original plans. According to the organization’s year-end assessment, Rebased is well-suited to its vision of decentralization and answering real-world demands, particularly in asset tokenization.

The new protocol prioritizes usability, programmability, and adoption. It paves the way for the full integration of smart contracts and decentralized applications (dApps). In addition, the system offers seamless interoperability with other blockchains.

The foundation explained that the transformation allows its blockchain to “compete effectively on the application layer, bringing advanced utility to developers and businesses alike.” IOTA revealed that future integrations, such as the synthesis of multiple execution environments directly into its Layer 1 chain, would expand the network’s capabilities.

Other Milestones

Besides the introduction of IOTA Rebased, IOTA has made considerable strides in the IOTA EVM (Ethereum Virtual Machine) and RWA (Real-World Asset) Tokenization. It also forged strategic partnerships with the government and private sector to expand its international reach and exposure.

The IOTA EVM’s arrival effectively bridged the network to the omnichain Web3 space and DeFi (decentralized finance) ecosystem. It unlocked enhanced interoperability that allowed the chain’s integration with the likes of Stargate, LayerZero, Pyth Network, and other emerging powerhouses in the Web3 and DeFi realms.

Moreover, the IOTA EVM marked the blockchain’s transition to an RWA tokenization hub. The milestone was reinforced by the Singapore-based IOTA Tenity RWA Accelerator Program that boosted the network’s real-world use cases to include its application in digital product passports (DPP), identity solutions, and logistical support.

Along the way, the organization forged vital partnerships with prestigious international non-governmental organizations (NGOs). It formed a consortium composed of the World Economic Forum (WEF), the Tony Blair Institute for Global Change, the Chartered Institute of Export and International Trade, and the Global Alliance for Trade Facilitation. Its biggest project by far that’s set to make a huge mark in global trade is the Trade Logistics Information Pipeline (TLIP).

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