news 
VeChain Announces Major Reward Model Upgrade—Here’s What to Expect!
February 18, 2025 – In a significant move aimed at enhancing the overall network security and sustainability, VeChain has announced a major reward model upgrade. The update is set to introduce a new Validator/Delegator staking system, which promises to curb inflationary pressures by aligning VTHO issuance with active network usage.
The revamped staking mechanism is designed to create a more decentralized and community-driven ecosystem, as it eliminates the need for Know Your Customer (KYC) verification for validators. This change will encourage more users to participate in securing the network, ultimately strengthening its overall resilience.
One of the most significant implications of this upgrade is the potential disruption of the market’s traditional fee structure. The introduction of a Dynamic Gas Fee Market, which dynamically adjusts transaction fees based on network demand, is expected to lead to improved efficiency and increased VTHO usage.
To further incentivize participation and provide an additional incentive for staking, VeChain will also be implementing a Priority Fee mechanism. This feature enables users to include tips with their transactions, which can significantly expedite the processing time of critical or high-priority transactions. It’s worth noting that 100% of these tips will be distributed as block reward bonuses to staking nodes.
The new staking NFTs (Non-Fungible Tokens) have a cap, and VeChain is urging users to prepare their stakes in advance of the scheduled launch event. This update is set to roll out in June 2025, with an anticipated AMA session between CEO Sunny Lu and the community on February 19.
In essence, this upgrade aims to tackle the current issues associated with network stability by promoting more widespread participation and incentivizing responsible behavior from stakeholders. While it may seem daunting at first, the potential implications of this change could have a profound impact on VeChain’s overall success.
To get a better understanding of these developments and their potential implications for investors and traders alike, we recommend attending the upcoming AMA session with CEO Sunny Lu and engaging in an open discussion about the new changes.
It is essential to recognize that the cryptocurrency market can be unpredictable and subject to change. As such, it’s crucial to stay informed about emerging trends and market fluctuations.
Source: http://www.crypto-news-flash.com
