Former popular altcoin project IOTA is preparing to come to the fore again with a series of important decisions. However, these decisions, which would contribute to the development of the network, led to a price drop days later.
IOTA price falls despite new altcoin network announcement
IOTA, which grew rapidly during the bull market of 2017, has lost market share in recent years. A move that aimed to reverse the trend, but failed, emerged recently.
IOTA co-founder Dominik Schiener reported on September 12 that they plan to launch the IOTA 2.0 network and expand the functionality of MIOTA tokens. These improvements that will come into force with IOTA 2.0:
- An advanced network where smart contracts will be introduced,
- Focusing on Layer 2 Blockchains and DeFi applications,
- Creating a new ecosystem fund,
- Increasing the use of IOTA tokens,
- (The Stardust hard fork, which will take place in October, will lay the technical foundations of IOTA 2.0.)
Anybody that even mentions "Oh #IOTA, but what about their Coordinator?" – here is the answer 🚀
This is a great interim step to completely remove the Coordinator in IOTA, and pave the way for the launch of EVM-compatible smart contracts and for IOTA 2.0. https://t.co/hVKuVD042q
— Dominik Schiener (@DomSchiener) September 12, 2023
Smart contracts executed on IOTA will enable the creation of significantly more demand for Mana, a reputation system for node operators in the altcoin network. This increases the demand for MIOTA. According to an IOTA representative:
This self-sustaining economic system is critical to improve the security of the IOTA network and create more demand for building more applications and layer 2 networks on top of IOTA.
IOTA 2.0 plans to support altcoin projects with ecosystem fund
Schiener said that they plan to establish a new ecosystem fund to encourage developers working on the network. “Without more financing, IOTA will gradually lose market share and market value,” he said in his statement. “We need to start making significant changes to drive greater adoption and growth,” he wrote.
After the hard fork, a temporary altcoin release process will begin every two weeks for 4 years, during which the total supply will be reached. A token release implemented over 4 years will be equivalent to an average annual inflation of 12 percent. At the end of these 4 years, MIOTA’s circulating supply will be 4.6 billion tokens. IOTA’s founder is hopeful for the future: “We want to give IOTA a chance to succeed in this market,” he says. However, the good news invites sellers to the stage instead of buyers.
MIOTA price fell after the announcement
IOTA (MIOTA), ranked 79th by market capitalization, is gaining downward momentum following the announcement. The altcoin recorded a value of 4.5% today, independent of the overall market. At the time of writing, it is trading towards the $0.161051 region, where it continues its bearish momentum.
As we reported as Kriptokoin.com, MIOTA stood out with the green signals it gave in recent weeks.
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