IOTA: how it works, supply and reviews
DeFi
In short
- Type
- Move-based layer-1 blockchain with object-centric architecture; EVM/Solidity contracts run on a layer 2
- Maximum supply
- No fixed maximum; supply changes with staking-reward minting and fee burning
- Risks and caveats
- IOTA has no fixed maximum supply; new tokens are minted every epoch and offset only by fee burning.
- Checked
- 28 October 2026
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Key facts
- Ticker
- IOTA
- Category
- DeFi
- Network
- token on Iota
- Mining algorithm
- Directed Acyclic Graph (DAG)
- Official site
- iota.org
- Whitepaper
- iota.org/pdf/IOTA_Technical_and_Tokenomics_Whitepaper.pdf
- Source code
- github.com/iotaledger
Data: CoinGecko, 2026-10-27. Only projects that still trade with meaningful volume are listed.
What is IOTA
IOTA is a public layer-1 blockchain for smart contracts written in Move, with an object-centric architecture and delegated proof-of-stake consensus. Its native token, IOTA, pays transaction fees, is staked with validators and is used in on-chain governance.
Network and consensus
| Parameter | Details |
|---|---|
| Type | Move-based layer-1 blockchain with object-centric architecture; EVM/Solidity contracts run on a layer 2 |
| Consensus | Delegated proof of stake with the Starfish Byzantine fault tolerant protocol |
| Launched | Project founded in 2015; the current Move-based network (IOTA Rebased) replaced the earlier Stardust network |
| Epoch | Validator set and stakes are fixed for each epoch of about 24 hours |
| Programming language | Move on layer 1; Solidity on the IOTA EVM layer 2 |
| Validators | A validator needs a minimum stake of 6 million IOTA, which can be delegated by others |
Supply and issuance
| Parameter | Details |
|---|---|
| Maximum supply | No fixed maximum; supply changes with staking-reward minting and fee burning |
| Initial distribution | 4,600,000,000 IOTA were migrated from the earlier Stardust network at the launch of IOTA Rebased |
| Issuance | 767,000 new IOTA are minted each epoch as staking rewards |
| Fee burn | Transaction fees are burned |
What IOTA is used for
- Paying gas fees for transactions and on-chain storage.
- Staking with validators in delegated proof of stake.
- Value transfer and use in smart-contract applications.
- On-chain voting on issues such as protocol upgrades.
Who develops and governs IOTA
- Foundation
- IOTA Stiftung (IOTA Foundation), a foundation registered in Berlin, Germany
- Headquarters
- Berlin, Germany
- Governance
- Token holders vote on-chain on protocol upgrades; the IOTA Foundation leads development
- Open source
- Yes; the node software is public on GitHub under the Apache-2.0 licence
History
| Date | Event |
|---|---|
| 2015 | IOTA founded. |
| 28 April 2021 | Chrysalis network upgrade went live. |
| 4 October 2023 | Stardust protocol upgrade and network fork; the original network continued separately as IOTA Classic. |
| April 2026 | Mainnet consensus upgraded to Starfish, an evolution of Mysticeti designed to stay reliable in adverse network conditions. |
Security and audits
- Consensus relies on an honest majority of validators; staking rewards are the incentive for honest behaviour.
- All transactions and assets are publicly viewable, so asset changes can be audited on-chain.
Risks and caveats
- IOTA has no fixed maximum supply; new tokens are minted every epoch and offset only by fee burning.
- Staked IOTA is locked for the whole epoch and can only be withdrawn when the epoch changes.
- Smart contracts written in Move can still contain logic errors, and the project recommends audits.
Official links
- Website: www.iota.org
- Docs: docs.iota.org
- Block explorer: explorer.iota.org
- Source code: github.com/iotaledger/iota
- Blog: blog.iota.org
Questions and answers
What is IOTA?
IOTA is a Move-based layer-1 blockchain with delegated proof-of-stake consensus. IOTA is also the name of its native token.
Who is behind IOTA?
IOTA was founded in 2015 and is developed by the IOTA Foundation (IOTA Stiftung), a foundation registered in Berlin, Germany.
What is the maximum supply of IOTA?
There is no fixed maximum. 4.6 billion IOTA were migrated at the launch of IOTA Rebased, and 767,000 IOTA are minted each epoch while fees are burned.
How does IOTA reach consensus?
Token holders delegate stake to validators, who run the Starfish Byzantine fault tolerant protocol to finalise transactions.
Sources
- CoinGecko — IOTA
- IOTA — Intro to IOTA
- IOTA — Tokenomics
- IOTA Foundation — Impressum
- IOTA Blog — Starfish on Mainnet
- IOTA Blog — The new Chrysalis network is live
- IOTA Blog — IOTA Stardust Upgrade
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