- VeChain (VET) has announced that it is subjecting its VeChainThor to a comprehensive upgrade to reimagine its tokenomics.
- This upgrade would create new validator opportunities and ensure greater decentralization.
VeChain (VET) is set to embark on a holistic upgrade of its VeChainThor through a technical roadmap dubbed VeChain Renaissance. According to the report, this would enable stakeholders to stay ahead of regulatory and technical trends while enabling network growth from the perspective of users and developers.
It’s official – VeChain’s largest protocol upgrade is underway: VeChain Renaissance.
The TL;DR: pic.twitter.com/3I7BaUEEx0— VeChain (@vechainofficial) December 6, 2024
Further analyzing the initiative, we discovered that this massive upgrade is sought to achieve two main goals – Reimagined Tokenomics and Technological Equivalence.
Reimagined Tokenomics of VeChain’s VeChainThor
According to the report, intelligent tokenomics creates important value for network engagement. In this case, its consensus upgrade would provide a “bold reimagining of its tokenomics model” including:
- New validator opportunities: This would ensure that the X-nodes and Economic Nodes are empowered to validate network transactions.
- Greater Decentralization: This would boost the resilience of VeChainThor and ensure that the community members become the main support of the ecosystem.
- Modified VTHO Tokenomics: VeChain would introduce a new VTHO distribution model to make the platform more attractive.
Technological Equivalence
This is important as VeChain seeks to meet the standards of the industry to make sure that the network communicates easily with others. According to the report, the Ethereum Virtual Machine (EVM) and JSON-RPC are currently the standard of communication. Embarking on this upgrade would trigger:
- Going Cross-chain: This implies that there would be a seamless integration with Ethereum-compatible protocol, thanks to JSON-RPC.
- Ease of Integration: Developers can easily port wallets, bridges, and other familiar tools to and from VeChainThor.
- Developer Adoption: The network would be open to over 100k blockchain developers.
- Institutional/Enterprise Integration: institutions and enterprises would be able to easily integrate VeChainThor from exchanges to custodians, etc.
In a nutshell, VeChain’s tokenomics updates expected to be seen in 2025 are the Revamped staking model, creation of a developer fund, Modified VTHO tokenomics, and VTHO distribution model.
For greater Interoperability, there would be new functionality for the Ethereum Virtual Machine (EVM). This will include EVM parity and cross-chain compatibility, JSON-RPC support, and a dynamic gas fee market modeled on EIP-1559.
According to VeChain, opening its EVM to other blockchains would enable it to offer its unique selling point to the market.
Emerging regulations, especially those in Europe such as Markets in Crypto-Assets (MiCA), create an impetus for change, as do the requirements of US institutional players with whom we are in ongoing discussions. We have delivered some incredibly innovative tools to date, from our unique two-token model to fee delegation that abstracts away the need for users to hold crypto assets. By opening our blockchain to other EVM-chains, we offer our unique selling points to the market, and benefit from innovations elsewhere.
At press time, VET was trading at $0.067 after surging by 2% on its 24-hour chart and 46% on its weekly chart.
