In an increasingly complex blockchain world, IOST takes a bold step: transforming from Layer-1 to Layer-2 on top of BNB Chain. This decision is not just rebranding—it's a smart strategy to survive and thrive in the era of modular blockchain.
So, why did IOST choose this path? Let's discuss the reasons one by one.
🔗 1. Focus on Real Applications, Not Heavy Infrastructure
As Layer-1, IOST had to manage everything: consensus, node network, security, and ecosystem. Now, as Layer-2, all of that is handled by BNB Chain as the Layer-1 host.
➡️ The result?
IOST can focus more on developing real applications such as:
Tokenization of real-world assets (RWA)
Payment infrastructure (PayFi, PayPIN)
Decentralized Digital Identity (DID)
🌉 2. Directly Connected to the BNB Chain Ecosystem
By becoming Layer-2 on top of BNB, IOST is directly connected to:
Liquidity from millions of BNB Chain users
Major DeFi protocols like PancakeSwap and Venus
Developer-friendly EVM infrastructure
➡️ This opens up opportunities for integration, collaboration, and broader adoption.
⚙️ 3. Layer-2 Technology = Cost-effective, Fast, Flexible
IOST maintains its efficient engine (Proof-of-Believability + WASM), but with the advantage of:
Low gas fees
High throughput (8,000+ TPS)
Secure synchronization to Layer-1 BNB
➡️ Suitable for large-scale applications without high cost burdens.
🔥 4. Healthier Tokenomics: There is a Burning Mechanism!
IOST 3.0 introduces 4 burning systems:
Burning from transaction fees
Burning from MEV
Burning from DAO proposals
Burning from ecosystem activities
➡️ The total potential burn reaches US$8 million per year—creating deflationary pressure and maintaining long-term token value.
🧩 5. Modular Blockchain = The Future
IOST follows a major trend: separating blockchain functions into modular.
L1 = security and consensus
L2 = execution & application innovation
➡️ This model has proven successful in other major projects like Optimism, Arbitrum, and Polygon zkEVM. IOST is playing in the same league.
🚀 Conclusion
Transforming IOST into Layer-2 is not a step back—it's a strategic step forward for:
✅ Focus on real solutions (RWA, PayFi, Identity)
✅ Connected to the large BNB ecosystem
✅ Running healthy and deflationary tokenomics
✅ Becoming part of the future of modular blockchain
📌 IOST is not just a blockchain—but the infrastructure for the future Web3 applications.
If you want to explore Layer-2 projects that are different from others, IOST 3.0 is worth a look.
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