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VeChain Reveals Major Tokenomics Overhaul with Renaissance Upgrade, What Does This Mean for VET and VTHO?
In a recent announcement, the blockchain project VeChain has introduced its most significant economic upgrade since launch – the Renaissance Upgrade. As part of this upgrade, the platform is undergoing a major tokenomics overhaul that brings transformative changes to its ecosystem.
The new system prioritizes staking as the key to earning rewards, effectively making VTHO more scarce by slashing inflation by 72.2% and increasing burning by 100%. This means that instead of passive VTHO earnings, holders must now stake their VET tokens to earn any rewards.
This shift aims to align with VeChain’s vision for a Web3-powered economy where incentives are solely given to active participants in the network, rather than idle holders. The previous passive earning system is being replaced by a staking-based model that encourages engagement and participation from users.
In terms of VET and VTHO, this overhaul significantly changes the dynamics of the ecosystem. The upgrade makes staking essential for any rewards or returns on investment. This means that VET holders must now actively participate in the network to earn VTHO tokens.
Validators who run the network will receive 30% of block rewards, while Delegators (those who stake and assign Staking NFTs) will take home 70%. To provide a clear understanding of the new system, it is necessary to discuss staking tiers and rewards. Validators require a minimum stake of 25 million VET tokens to earn the highest possible rewards, while X-Node Delegators will receive a boosted reward rate of 1.5x and Economic Node Delegators get standard rewards.
Moreover, early stakers who contribute more than 10 billion VET tokens can potentially reach an APY (Annual Percentage Yield) of up to 12.8%. However, it is essential to note that these yields will decrease as the number of participants increases.
In summary, VeChain’s Renaissance Upgrade aims to build a sustainable blockchain economy by making VTHO more scarce. The new system strengthens tokenomics by reducing inflation and increasing burning. As such, the market response to this upgrade will ultimately determine its success.
Source: https://cryptonewsland.com/vechain-reveals-major-tokenomics/
