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Enterprises will buy IOTA after Mana is implemented: Dan Simerman

  • Companies will buy IOTA similar to Bitcoin in order to be part of the new global machine economy with the implementation of Mana.
  • Analogous to PlanB’s S2F model for Bitcoin, IOTA is currently facing a new phase transition

Dan Simerman, the director of financial relations at the IOTA Foundation believes that an abstracted model of PlanB’s infamous stock-to-flow (S2Fv2), which proposes a Bitcoin price of $100,000 by the end of 2021, is applicable to IOTA’s tokenomics. As PlanB noted just yesterday, the model tracks the current BTC price “like clockwork”.

httpss://twitter.com/100trillionUSD/status/1366300758036131840

IOTA’s Mana is comparable to spectrum

In a blog post, Simerman now argued that PlanB’s proposed “phase transitions” are applicable to the IOTA token and its economics. This means that the price gets a massive boost every time its narrative changes. For example, Bitcoin was first a “proof of concept”, then became a digital currency (“after USD parity 1BTC = $1”), then an “e-gold”, and currently a “financial asset”.

Simerman goes on to state that “IOTA’s first phase transition was as a machine currency.” With the introduction of Mana, he says the ecosystem is now facing a new transition:

At a very high level, Mana is a scarce and limited resource generated by the IOTA Token that allows anyone to send feeless transactions on the network. The attribute of scarcity is a necessary one, because scarce resources are often required in distributed systems in order to limit the risk of attacking a system (like e.g. spamming the network). IOTA network participants generate Mana by holding IOTA tokens, allowing the world’s nations and corporations access to ‘bandwidth’ on the IOTA network.

The term ‘bandwidth’ is a reference to spectrum due to “many similarities.” “Electromagnetic spectrum is composed of a naturally occurring range of frequencies that exist around us.” Like Mana, spectrums are a very scarce resource, with frequencies on a spectrum having “incredible utility” to build communications systems, for example.

They are highly coveted and competitively sought after by organizations around the world. Spectrum can be purchased on an open market, and (mostly) anyone can try to acquire it. Spectrum is the backbone of the 20th century and early 21st century. Mana has very similar properties to Spectrum.

Implementation of Mana comes with Nectar

As Simerman discusses, Mana has “incredible utility” in that it allows anyone in the world to send data over a global decentralized network. Therefore, companies and other entities will want to acquire Mana to be part of the new global machine economy or to own it and rent it out to other network players.

Thus, Mana has the potential to become the “has the potential to become the digital oil that runs the Machine Economy of the 21st century.” Similar to Tesla’s Bitcoin purchase, Simerman therefore believes that companies around the world will buy IOTA that want to act as “IOTA Infrastructure Partners” in the upcoming machine economy.

The upcoming Nectar testnet for Coordicide (IOTA 2.0) will implement this functionality for the first time and present it to the public. Simerman subsequently noted in this regard:

Finally, like all things IOTA, our goal is and has always been to ‘expand the pie’ and bring the world of distributed ledger technology into the real world for individuals, corporations and businesses. With a phase transition of the IOTA token into the realm of Digital Infrastructure, it is possible that we again will break the boundaries of how people see, use, and take advantage of digital assets.

About Author

Jake Simmons

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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