Binance Issues Risk Warning on IOTA, Highlights Tokenomics Changes

Binance Issues Risk Warning on IOTA, Highlights Tokenomics Changes

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

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