Introduction

With the rapid development of blockchain technology, an increasing number of cryptocurrency projects have attracted investors’ attention, and IOST (Internet of Services Token) is one of them. Through its efficient technical architecture and innovative economic model, IOST has garnered significant interest. This article will analyze the various factors influencing IOST’s price and forecast its potential price trends in the coming months, helping investors gain a better understanding of IOST’s potential in the cryptocurrency market.

Figure:https://iost.io/

What is IOST?

IOST is a high-performance blockchain platform designed to address scalability, security, and usability issues in blockchain technology. IOST employs the innovative Proof of Believability (PoB) consensus mechanism, enabling it to handle high throughput transactions and provide secure and reliable network services. With the launch of IOST 3.0, IOST has introduced more efficient Layer 2 solutions and real asset tokenization capabilities, making IOST stand out in cross-chain interaction and payment infrastructure, attracting more developers and enterprises to join its ecosystem.

Image:https://docs.iost.io/getting-started/quick-start

Token Economics and Deflation Mechanism

IOST Token Economics

1. Node Reward - 60%

• This part of the token is used to establish a strong validator network, support the growth of the IOST ecosystem, and be distributed in stages over 60 months.

2. AirDrop (Airdrop and Stakedrops) - 20%

• Intended to reward existing IOST holders and ecosystem contributors through airdrops, involving DeFi and staking liquidity mining plans, incentivizing ecosystem development, distributed over 48 months.

3. PayFi Community Incentive - 8%

• This section is used to support the development of the PayFi application, providing subsidies for merchants, funding the incubation of RWA (Real World Asset) projects, and covering marketing expenses, distributed in 36 monthly installments.

4. Nexus DAO - 4%

• Funds for DAO operation, community governance incentives, proposal execution funds, and emergency reserves, distributed over 48 months.

5. Developer Grant（开发者基金） - 5%

• To fund infrastructure development, technological innovation research, including security audits and developer tools, released in installments over 36 months.

6. Team - 3%

• For team recruitment and related talent incentives, ensure long-term team commitment and continuous innovation, with gradual release over the next 36 months after a 12-month lock-up period.

Image:https://docs.iost.io/tokenomics/economic-model

Token burning mechanism

In order to maintain the scarcity of IOST tokens and enhance deflationary pressure, IOST has designed the following four destruction mechanisms:

1. Transaction Fee Burning

• By 2025, the daily trading volume is expected to reach 12 million times, with a transaction fee of about 0.0025 USD per transaction. 20% of the transaction fees will be used for destruction. The estimated annual destruction amount is 2.19 million USD.

2. Node MEV Burning

• By 2025, nodes will generate $20 billion in transaction volume by maximizing the extraction of value (MEV), with 30% being burned. The estimated annual burn volume is $180 million.

3. Ecosystem-Based Burning

• For the tokenization of RWA (Real World Assets), it is expected that the target value of RWA in Phase 2 will exceed 500 million US dollars. Based on a 0.1% transaction fee rate, the expected annual burn amount is 1 million US dollars.

4. DAO-Initiated Burning

• Based on network usage, a conservative estimate is that 0.5% of network transaction fees will be destroyed, with an expected annual destruction amount of $3 million.

Image:https://docs.iost.io/tokenomics/economic-model

The overall impact of the destruction mechanism

The combination of these destruction mechanisms is expected to generate significant deflationary pressure as the IOST network expands. According to market analysis, the total amount of destruction in 2025 is expected to reach approximately $5.8 million. With the increase in network usage, the impact of these destruction mechanisms will become more significant, helping to maintain the value of the IOST token.

These destruction mechanisms not only help to increase the scarcity of tokens but also ensure the long-term healthy development of the token economy through decentralized governance.

Factors affecting IOST prices

Market trends

The overall trend of the cryptocurrency market has a significant impact on the price of IOST. The price fluctuations of mainstream cryptocurrencies such as Bitcoin and Ethereum usually influence the performance of other tokens. Currently, with the participation of institutional investors and the maturation of the cryptocurrency market, the market is gradually transitioning from a speculative stage to a more stable development stage, which brings more opportunities for projects like IOST.

Technological development

The technological progress of IOST is a crucial factor determining its price trends. The launch of IOST 3.0 will greatly enhance its blockchain’s scalability, transaction efficiency, and cross-chain compatibility. These technological innovations not only optimize platform performance but also strengthen the connection between IOST and real-world applications, which is expected to attract more developers and enterprises to participate in its ecosystem construction, thereby driving up the price of IOST.

Partnership and Collaboration

IOST’s cooperation with multiple blockchain projects and enterprises has also had a profound impact on its price. In particular, in the areas of payment infrastructure and tokenization of real-world assets, IOST’s partnerships are expected to enhance its market application and ecosystem expansion. For example, cooperation between IOST and other blockchain platforms enables cross-chain operations, while cooperation with the financial industry promotes the widespread application of IOST, greatly enhancing IOST’s market recognition.

IOST price history and past performance

Since December 2024, IOST has been in a downtrend, dropping by nearly 4 times from its peak. In March 2025, after the airdrop announcement, the value of IOST rose by 30.31%. The announcement will distribute 8.528 billion IOST tokens on exchanges such as Binance, Upbit, OKX, and Coincheck. To qualify, users must hold at least 1,000 IOST tokens, with the snapshot taken on March 15, 2025. As of March 14, 2025, the current price of IOST is around $0.0042, with significant fluctuations. Please trade cautiously and be mindful of the risks.

Image:https://docs.iost.io/tokenomics/proposal/airdrop

Image:https://www.gate.io/trade/IOST_USDT

2025 IOST Price Prediction

According to the prophet model, backtesting data from the past 300 days, it is predicted that IOST may experience a downward trend after the airdrop is completed (this prediction does not constitute any financial advice, only the forecast price of the prophet model). However, investors still need to be cautious, as the cryptocurrency market has high volatility, and any global economic or policy changes, strengthened regulations, may affect the price of IOST. Therefore, investors need to closely monitor the market dynamics in order to make wiser investment decisions.

Conclusion

IOST, as a high-performance blockchain platform, has great growth potential in the future. With the upgrade and technological innovation of IOST 3.0, IOST is expected to continue expanding its market share in the coming years and driving price increases. Despite the short-term uncertainty in the crypto market, the long-term prospects of IOST are very promising due to its technological advantages and the continuous growth of its ecosystem. For investors, paying attention to technological advancements and changes in market sentiment will help make wiser investment decisions.