The Nuggets also get Ivan McFarlin.
Iverson, a former Bethel High star, now takes his 31.2-point scoring average to Denver and ends 10 turbulent seasons with the franchise that made him the No. 1 overall pick in 1996.
"Our personality is going to change. It's going to be different. That will take some time," Nuggets coach George Karl said.
"All trades shake your team a little bit," he said. "I hope that they realize that we're doing this to be better, we're doing this to be special, we're doing this to contend."
A seven-time All-Star, Iverson transformed the 76ers from lottery losers to contenders, though he couldn't bring home an NBA title to this championship-starved city. He came close in 2001, when the 76ers lost to the Los Angeles Lakers in the NBA finals. Since then the team has fallen from the elite, missing the playoffs twice in the last three seasons.
This year has hardly been an improvement, with the 76ers on an 11-game losing streak. Only Memphis (5-19) has a worse record than the 76ers (5-18), who are winless since Nov. 24.
"We haven't won a championship, and I think we were a long way from winning a championship, even with Allen," 76ers chairman Ed Snider said. "It was time for us to take a deep breath and say we've got to move in a different direction. Allen wanted to move in a different direction."
Now the 31-year-old Iverson's chase for a coveted championship moves to the Western Conference.
Sixers team president Billy King thanked Iverson for his 11 years in Philadelphia, saying, "I think he's one of the greatest ever to play the game."
Iverson is due the rest of his $18 million this season, and a combined $40 million through the 2008-09 season.
His relationship with the only team he's ever played for was irrevocably broke once he asked for a trade two weeks ago. He had just been fined for missing a team function and his relationship with coach Maurice Cheeks had deteriorated to where the point guard didn't want to play for him anymore.
The 76ers sent Iverson home for good after holding him out of a morning shootaround and, at the time, Snider said the All-Star guard "probably" played his last game in Philly. Iverson's nameplate was removed, his locker was cleaned out, and his dazzling highlights were edited out of a pregame video package.
No matter the drama in Iverson's life, it rarely affected his performance on the court. Even this season, with Iverson unhappy and the 76ers stuck in last place, he still is second in the league in scoring (behind Anthony) and averaged 42.7 minutes and 2.2 steals.
Iverson is averaging 28.1 points, 6.1 assists and 2.3 steals in 697 career games. He scored a career-high 60 points against Orlando on Feb. 12, 2005.
But as dynamic as Iverson has been, and as thrilling as it can be to watch the 6-foot tattooed bundle of energy play, only once did he lead the Sixers out of the second round of the playoffs. And Philadelphia was only a modest 355-342 (.509 winning percentage) with Iverson in the lineup for regular- season games.
At his best, he has been the ultimate gamer, a hustling, hard-charging MVP who became one of the most popular players in the league. His No. 3 jersey was always one of the top sellers.
Only Minnesota's Kevin Garnett has been with one team longer than Iverson among active players.