Move Industries announced plans to transition its Movement Network from a sidechain to a standalone Layer 1 blockchain, aiming for significantly improved performance and native token staking following a previous market controversy.

The Event in Detail

Move Industries, the entity behind the Movement Network, has announced a strategic pivot from its current sidechain architecture to a sovereign Layer 1 (L1) blockchain. This transition is designed to enhance network performance and introduce native MOVE token staking capabilities. A public testnet for developers is scheduled to launch soon, with the mainnet migration targeted for completion by the end of 2025.

This architectural shift follows a period of significant corporate restructuring, including the rebranding of Movement Labs to Move Industries and a change in leadership after a May 2025 controversy. The incident involved the dismissal of co-founder Rushi Manche over a market manipulation scandal, which saw 66 million MOVE tokens allocated to a firm, Rentech, resulting in a $38 million sell-off and a substantial depreciation of the token's value. The MOVE token subsequently fell from a high of $1.45 to approximately $0.16, destroying over $2.5 billion in market value.

Strategic Rationale and Performance Targets

The transition to an L1 blockchain is projected to deliver over 10,000 transactions per second (TPS) with sub-second finality, a substantial increase from the network's previous capacity of 500-600 TPS. This upgrade aims to maximize the performance potential of the MoveVM and eliminate the centralized sequencer, which previously represented a single point of failure within the sidechain model. The L1 design is intended to provide the stability, extensibility, and performance necessary for Movement's strategic focus on real-world asset tokenization and mobile-first consumer experiences.

Furthermore, Movement will adopt Move 2.0 language features, offering developers advanced primitives such as enum types and function values. Existing funds, smart contracts, and network activity are expected to transfer seamlessly during the migration, aiming for a transparent transition for end-users.

Financial Mechanics and Token Utility

A key component of the L1 evolution is the introduction of native MOVE token staking. Only unlocked MOVE tokens will be eligible for staking, a measure designed to promote genuine community ownership and network security by excluding locked tokens held by investors or core contributors. This mechanism aims to enhance the token's utility and decentralize network governance.

The Movement Network's Total Value Locked (TVL) recently reached $200.6 million. Initial market reaction to the announcement included a 1.9% price increase for the MOVE token, indicating cautious optimism among investors despite the project's recent history.

Business Evolution and Market Positioning

The rebrand from Movement Labs to Move Industries and the subsequent leadership changes, including the appointment of Torab as CEO and Vibe Sommalier as President and CMO, represent a concerted effort to rebuild trust and redefine the project's strategic direction. This move positions Movement as a competitor in the L1 blockchain space, differentiating itself through its performance capabilities and its enhanced Move 2.0 language support. The previous market manipulation incident underscores the importance of robust governance and transparency, which the new L1 architecture and staking mechanism aim to address.

Broader Market Implications

This strategic pivot by Move Industries signals a potential trend among projects seeking to enhance scalability and decentralization by moving from Layer 2 or sidechain solutions to sovereign Layer 1 architectures. If successful, Movement's L1 transition could set a precedent for other blockchain projects facing similar performance bottlenecks or centralization concerns. The focus on real-world asset tokenization and high-throughput applications aligns with broader Web3 industry trends, suggesting an intent to capture market share in critical growth sectors. The emphasis on native staking and the elimination of a centralized sequencer also reflects a commitment to decentralization, which could influence investor sentiment and developer adoption within the competitive L1 ecosystem.