IOTA has announced that it will transition to a sustainable tokenomics model called “IOTA Rebased.”
This new model predicts an annual inflation of 6% on the network and plans to produce 767,000 IOTA per epoch. Staking rewards will be offered for validators and delegators, transaction fees will be kept low, and a deflationary mechanism will be activated by burning transaction fees.
Binance warns users
Binance, on the other hand, made a statement regarding this new model, warning users that there will be a significant increase in total supply and circulating supply. The exchange recommended that users refer to the updated information provided by IOTA.
Binance also said that it will display a risk warning pop-up and banner on the IOTA trading page. The move aims to help traders make more informed decisions about the changes. According to TradingView data, the IOTA price fell by more than 3 percent following these developments.
Stay tuned