IOTA, a ruthless Distributed Ledger (DLT) Network, Today announced the introduction of IOTA pledge. Expanding the utility of IOTA tokens will provide new opportunities for token holders to be rewarded for participating in the IOTA ecosystem.
IOTA’s temporary network Shimmer will be the first project to use the IOTA network to fairly distribute its entire token supply-turning the IOTA tangle into a launch pad for a new token economy.
Multi-asset ledger without transaction fees
Currently, IOTA is transforming into a fully decentralized, programmable multi-asset ledger. Combined with smart contracts, IOTA will become a network that allows developers to create a dApp ecosystem with unique token models and economics.
IOTA’s unique layer 1 tokenization architecture and fee-free transactions, layer 2 smart contracts with full EVM compatibility, and atomic composability enable builders to create dApps with the flexibility to customize everything, including execution fees and rewards And token incentives.
“The foundation of these token ecosystems will be the IOTA token (IOTA), turning the native token of the IOTA network into the launch pad of the new token economy. As one of the oldest DLT networks since its establishment in 2015, there is no pre-mining And fair token distribution, IOTA provides an opportunity for innovators to start their own token economy and invite one of the largest crypto communities through open token distribution. So far, the new token network lacks a mechanism that can easily Distribute tokens fairly to IOTA token holders.”
– IOTA team
IOTA pledge is a process through which IOTA token holders can participate in the public distribution of any type of new tokens. It is a mechanism for fair distribution of new tokens to a group of existing active users.
How staking works on IOTA
Staking IOTA tokens is completed through a simple transaction in the Firefly wallet to show the network the beginning of participating in staking tokens. All nodes in the IOTA network can use the new pledge plug-in to identify and process pledge information, record them separately, and calculate the rewards associated with any IOTA address that has activated pledges.
All information about staking is attached to the IOTA address and shared by all participating staking nodes. Therefore, the node gets the same information and can calculate the reward separately. In this way, IOTA guarantees that nodes and users who connect their Firefly wallets to the nodes can independently verify mortgage rewards.
The pledge rewards are allocated to the IOTA mainnet addresses, which hold the pledged IOTA tokens. To get rewards (ie Shimmer tokens on the Shimmer network), users need to sign a special transaction with Firefly, using the private key of the IOTA token address holding the original mortgage. Firefly automatically completes all these operations by clicking a button.
IOTA pledge rewards
IOTA’s token supply is capped, and IOTA is one of the few networks without inflation. When someone pledges IOTA tokens, the pledge reward will not be paid in newly minted IOTA tokens, but in tokens issued on the IOTA network and other networks. This means that users will not earn more IOTA tokens, but will earn tokens from new encrypted networks or applications.
The best example of this process is the Shimmer network.In this case, IOTA token holders can pledge their IOTA tokens for receiving Shimmer tokens as a reward.