Saturday, 15 Nov 2025

VeChain’s modified tokenomics has a restrictive effect on the creation of new tokens

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15 Nov 2025 10:12
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  • VeChain’s Hayabusa upgrade makes VTHO token generation dependent on staked VET tokens and increases rewards for active participation.
  • The mainnet will be activated on December 2nd; a seven-day VTHO pause allows for dynamic synchronization of staked tokens across the blockchain network.

VeChain hat das Hayabusa-Upgrade introducedwhich brings a significant change to VTHO tokenomics. The system is no longer based on a static model, but rather ties token generation to the amount of VET tokens staked on the blockchain network. The new system is intended to improve economic sustainability while at the same time better adapting the rewards to active participation.

The new approach makes it possible to adapt the issuance of VTHO tokens in real time to changing staking behavior. By linking token creation to network activity, VeChain aligns resource production with demand. Expected rewards change depending on the amount of VET tokens staked, making it clear how your participation impacts earnings over time.

Under the previous static model, each VET produced a small amount of VTHO every second, adding up to about 13.7 billion VTHO per year. The Hayabusa upgrade replaces that with a flexible system that adjusts production based on staked VET and directly connects token creation to community engagement and blockchain security.

VeChain Phase Two only rewards active VET stakers

According to VeChain, phase two of the VeChain Renaissance will introduce staked VET rewards that will only reward those who actively contribute to the platform, thereby excluding unused holdings from issuing rewards. Validators are also rewarded, contributing to the decentralization and security of the blockchain while creating economic incentives for those involved.

The examples in the announcement show how different stake amounts change the rewards. A deployment of 2.525 billion VET generates approximately 3.86 billion VTHO in a year, while a deployment of 60 billion VET generates almost 19 billion VTHO. This difference shows how the system controls inflation and encourages more people to use their VET.

The burn mechanism plays a key role in long-term sustainability. VeChain burns all base gas fees in VTHO, which lowers circulating supply. By using variable issuance, the network adjusts supply based on actual usage, helping to support token value and reduce additional issuance over time.

VeChain Testnet transitions from PoA to DPoS

The testnet completed the transition from PoA to DPoS on November 11, 2025. Mainnet activation is scheduled for December 2nd, followed by seven days without token generation. This time window is used to adapt the system to dynamic rewards through staking.

Staked NFTs connect locked VET in economic nodes to dynamic issuance. Delegator NFTs allow token holders to delegate staked tokens to validators, increasing the potential for returns and encouraging investor participation. These updates improve decentralization and reward those who actively contribute to securing and maintaining blockchain operations.

VeChain’s model is designed to ensure the efficient functioning of the blockchain. The issuance and burn rates associated with NFT rewards cause the mechanism to be driven by economic incentives.

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