IOTA Price Surges 20% Daily as Team Announces Staking Testnet

The IOTA network is moving forwards with the development of its multi-asset ecosystem. The foundation will soon launch a staging network – the Shimmer network – to test its new staking feature for IOTA tokens. Interestingly, other tokens minted on the blockchain will be sent to stakers – not IOTA itself.

Staking IOTA

IOTA announced its new staking test net in a blog post earlier this week. The staking feature is designed to foster fair token distribution for new digital assets. It capitalizes on the token distribution process, which has already taken place for IOTA itself, which the company deems as “fair.”

IOTA nicknamed this new distribution method “rolling airdrops.”

“With the introduction of staking to IOTA, we want to make fair token launches accessible to the entire community and give innovators the opportunity to incentivize a large and passionate community,“ reads the announcement.

Like Bitcoin, IOTA has an absolutely fixed token supply. This means that stakers cannot be rewarded through newly minted IOTA tokens and must instead be compensated through “new crypto networks or applications.” For example, stakers on the Shimmer network can stake IOTA and be rewarded in Shimmer tokens.

Staking can be performed through a simple transaction using the Firefly wallet. Meanwhile, every IOTA node continuously calculates how staking rewards should be distributed, based on which addresses are staking and how much.


The post concludes by stating that the entire Shimmer token supply will be distributed to IOTA stakeholders. Staking will be announced on Shimmer’s Twitter account 24 hours in advance of its activation.

IOTA’s Comeback

Throughout 2018, IOTA appeared to fade into irrelevance as the token’s price collapsed following the 2017 bull run. However, it began mounting a comeback this year with a string of major projects and updates. This was followed by a slight resurgence of its price, which is now showing signs of life.

One of the latest features added to the network was that of zero-fee smart contracts. This gives IOTA a major advantage over competing chains, alongside its near limitless scalability.

On a more micro-scale, IOTA’s price is up by nearly 20%, while the rest of the market bleeds out. It trades above $1.4, which could be attributed to the aforementioned announcement. IOTA’s market cap is close to $4 billion, which places it among the top 50 largest crypto assets by that metric.


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IOTA Foundation to launch staging network and reward token

The IOTA Foundation has announced the upcoming launch of a staging network, Shimmer, in a bid to advance the IOTA roadmap towards fully functional decentralization.

The layer-1 network will act as an innovation testbed for developers and builders in the community seeking to evaluate decentralized finance (DeFi) and nonfungible token (NFT) applications. This sandbox model will allow them to establish the efficiency and compatibility of applications prior to launching on the IOTA mainnet, ensuring smooth deployment.

The first major network upgrades hosted on the Shimmer network are programmable multi-asset ledger, smart contracts, full decentralization, and sharding.

The IOTA Foundation is an open-source, not-for-profit entity — known as a Stiftung in Germany — which was incepted in 2018 to support multi-faceted initiatives within the IOTA ecosystem such as research, development and education in the distributed ledger technology (DLT) space.

IOTA token holders will be granted the ability to earn staking rewards in $SMR via the platform’s Firefly wallet. Following token distribution over the coming months, the Shimmer network is slated to launch in early-2022.

Co-founder and Chairman of the IOTA Foundation, Dominik Schiener, cited the recent success of Polkadot’s canary network, Kusama, to explain the company’s assurance of market receptiveness towards this announcement.

“As we’ve seen with the success of Kusama and Polkadot, the Shimmer network will become an incentivized staging network offering crucial testing and public validation to our ambitious development roadmap.”

Related: Iota Foundation to support EU blockchain initiative

In mid-October, the IOTA Foundation released its smart contract beta platform with the ambition of fostering the growth of DeFi and NFT applications due to proposed incentives of lower fees and higher scalability.

Schiener also outlined potential risks of the network, and how the team have worked to mitigate their probability.

“Introducing tokenization, complex output types, smart contracts and new consensus offers exciting new opportunities. These opportunities aren’t without significant risks, however, and Shimmer will ensure the safety of each upgrade. With Shimmer, we are supercharging the innovation playground around IOTA.”