The post IOTA Supply to Increase with Staking, Binance Warns appeared on BitcoinEthereumNews.com.

Binance issued a risk warning regarding the IOTA tokenomics changes, clarifying its neutral stance on the updates and highlighting the potential risks of a price drop. The IOTA Rebased update will shift the network to an object-based design running on the Move Virtual Machine (MoveVM), enabling advanced programmability and integration of EVM. The circulating and total supply of IOTA tokens is expected to increase under the newly proposed “IOTA Rebased” protocol. The advanced protocol comes with staking rewards, validator incentives, and nominal transaction fees. Thus, Binance has issued a risk warning on the tokenomics changes. The exchange explained its role in the sharing of the update and potential regulatory actions, as reported by CNF.  The new protocol will bring an annual inflation rate of 6%, which amounts to 767,000 IOTAs minted per epoch. Validators and delegators will receive those newly minted tokens as staking rewards. A validator will have to stake at least 2 million IOTAs. In the beginning, the network will support up to 150 validator seats, and governance mechanisms will be in place to adjust this cap if needed. The fees on transactions, which were previously absent in IOTA’s network, are now nominal. The average transaction will cost about 0.005 IOTAs. These fees will be burned to counter inflation and create deflationary pressure on the token supply. Binance’s Take On IOTA Rebased In a recent notice, Binance clarified its neutral stance on IOTA’s proposed changes but continued earning the users. The exchange stated, “The mere act of Binance posting the change of tokenomics requested by the project team on the website does not imply approval or authorization of its changes.” The exchange also highlighted that it does not verify the authenticity of data provided by the IOTA team and encouraged users to refer to the project team directly…

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Filed under: News - @ December 25, 2024 5:23 am