VeChain Reveals Major Tokenomics Overhaul with Renaissance Upgrade, What Does This Mean for VET and VTHO?

• VeChain reveals major tokenomics overhaul with Renaissance Upgrade.
• The latest changes include prioritizing staking and making VTHO more scarce. 
• The blockchain has also slashed inflation by 72.2% and has increased burning.

The blockchain project VeChain has just introduced Renaissance, its most significant economic upgrade since launch, bringing transformative changes to its tokenomics. One passionate web3 enthusiast goes on to explain what this means for the VeChain ecosystem and the holders of VET and VTHO. 

As we can see from the post above, the enthusiast breaks down the meaning behind this upgrade. She begins with highlighting the most important changes, which are no more passive VTHO earnings, inflation slashed by 72.2%, burning increased, and staking now being key to rewards on the VeChain ecosystem. All in all, the deflationary model of VTHO has been greatly enhanced.

Previously, VeChain holders earned VTHO passively, but the new system shifts rewards to active participants. Instead of simply holding VET, users must now stake it to earn rewards. This move aligns with VeChain’s Web3 for Better vision, ensuring incentives go to network contributors rather than idle holders.

To specify, VET holders must stake to earn VTHO. Validators running the network, receive 30% of block rewards while Delegators, those staking and assign Staking NFTs share 70% of rewards. Furthermore, this new system comes with staking tiers and rewards where Validators require 25 million VET and earn the highest rewards. 

Meanwhile, X Node Delegators receive a 1.5x reward boost, and Economic Node Delegators get standard rewards (1.0x). Additionally, early staking offers higher yields—if 10 billion VET is staked, APY could reach 12.8%, but rewards decrease as more people stake. Ultimately, VeChain is making VTHO more scarce. 

With inflation down by 72.2%, and 100% of base transaction fees being burned, this new system tightens supply and strengthens tokenomics. All in all, this upgrade aims to create a sustainable blockchain economy for VeChain, but its success, like anything else, will depend on how the market responds, concludes the enthusiast.

Tags:Altcoin Altseason Blockchain Crypto market cryptocurrency VeChain VeChainThor VET VTHO