IOTX Utility in IoTeX 2.0
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IOTX tokens will be used across the entire IoTeX 2.0 infrastructure and ecosystem, expanding from the existing L1 utility to the new infrastructure modules.
Let's go through them:
IOTX tokens are still being used for rewarding Delegate nodes for validating L1 transctions and participate in consensus. Also, token holders will participate in governance by staking IOTX and vote their favorite delegate and receive IOTX rewards for it. The IOTX token will continue to serve as the native currency of the IoTeX L1 blockchain in IoTeX 2.0, where users and developers will pay fees in IOTX to deploy and utilize Dapps.
In IoTeX 2.0, device owners will burn IOTX to register their devices on the IoTeX L1 and receive , establishing a trusted anchor for participating in DePINs. Additionally, the IoTeX L1 will utilize a DAO, allowing token-holders to vote on the allocation of network incentives to various initiatives. This aims to drive the onboarding of new devices, DePINs, Dapps, and users, thereby increasing the utility of IOTX through burning, staking, and spending.
This introduces a new economy involving staked IOTX, where the MSP effectively "leases" security and trust to DIMs, which are required to stake IOTX. This also creates new earning opportunities for IOTX stakers, who will earn their base IOTX staking rewards as well as additional rewards for re-staking their tokens, including potential bribes from DIM projects.
DePIN Infrastructure Modules (DIMs) will be required to stake IOTX in order to join the Modular Security Pool (MSP), gain security from the pool of re-staked assets, and offer their services in a verifiable fashion to Dapps, L2s, and users. DIMs may also choose to utilize IOTX as payment from Dapps that leverage their services, or they may utilize their own tokens. For example, a long-term storage provider like Filecoin or a data availability provider like NEAR would stake IOTX to join IoTeX 2.0 as a DIM, after which they could charge Dapps for their data services in their own tokens. For several of the IoTeX 2.0 DIMs that are built in-house by the IoTeX team, such as ioID and ioConnect, payment for these services will be denominated in the IOTX token.
Projects and L2s that launch on the IoTeX 2.0 tech stack will pay IOTX to process transactions and interact with smart contracts. In addition, Dapps and L2 chains may choose their own modular tech stack and pay one or more DIMs for services, such as connectivity, data storage, off-chain compute, and more, in the DIM's token. To close the loop, most Dapps will have their own tokens that users will acquire and spend to access the Dapps services.
IoTeX 2.0 will allow users to repurpose their staked IOTX by re-staking or re-hypothecating it to the . The MSP is designed to extend the security of the IoTeX L1 blockchain to that integrate with IoTeX 2.0. DIM builders can use the MSP to incentivize IOTX stakers to allocate their re-staked IOTX to provide security for their solutions.
