IOTA Foundation Responds to Criticisms from MIT Media Lab’s Digital Currency Initiative Team

The IOTA Foundation was established in Germany in 2017 to support the development of the IOTA platform and related technologies. The aim of the foundation has always been to operate in a collaborative manner with other parties.

Over the last few months, however, the IOTA platform has been the subject of ongoing criticism by the Digital Currency Initiative (DCI) team at the MIT Media Lab.

This document serves as the IOTA Foundation’s official and comprehensive response to these criticisms.

To say that IOTA transactions are not fee-free is purely semantic. IOTA transactions are fee-free in that value sent is exactly equal to value received, with no transaction fees paid either to the network or to miners. The amount of power consumption is and will remain effectively trivial — and only exists at all due to the laws of thermodynamics, not fees. Source