- VeChain has completed the second phase of its “Hayabusa” upgrade, introducing a Delegated-Proof-of-Stake consensus mechanism.
- The upgrade aims to enhance economic security, increase user rewards, and establish a more open governance model.
- The changes are part of the broader “VeChain Renaissance” technical roadmap involving transaction fee reforms and staking improvements.
- VeChain emphasizes real-world applications, with over 5.5 million users engaging in sustainability and customer engagement platforms.
- Recent partnerships include collaborations with brands like Lululemon, Rekord, and the Ultimate Fighting Championship (UFC).
Blockchain platform VeChain has implemented the second stage of its extensive “Hayabusa” upgrade, transitioning from a Proof-of-Authority consensus mechanism to a Delegated-Proof-of-Stake model. This change aims to boost the network’s economic security and decentralization by making validators “public and permissionless,” according to VeChain CEO Sunny Lu, as stated in a medium post.
Under this new model, all rewards of VeChain’s gas token VeThor (VTHO) are exclusively given to stakeholders who actively participate in network validation. This approach increases the annual percentage yield (APY) for these users, reduces “idle” VTHO held on exchanges, and fosters a more deflationary token economy that reinforces the ecosystem’s value over time.
The upgrade is part of VeChain’s “VeChain Renaissance” roadmap, which includes three key phases focused on improving the Ethereum Virtual Machine (EVM) model, developer tools, tokenomics, and incorporating an EIP 1559 gas fee structure similar to Ethereum’s. This structure introduces a 100% base fee burn combined with priority tips to validators for processing transactions.
Validators on VeChain can stake up to 600 million VET tokens per validator, significantly higher than Ethereum’s 32 ETH staking limit, which influences their reward weighting. The recent changes have also been submitted and confirmed on the European Securities and Markets Authority’s register under the EU’s MiCA regulatory framework.
Since its inception in 2017, VeChain has experienced uninterrupted uptime through eight hard forks, with Hayabusa marking the latest network upgrade. The platform prioritizes “real-world utility,” demonstrated by 5.5 million users engaged in the past year through its sustainability and customer engagement platform VeBetter, which integrates over 50 applications rewarding users for environmentally friendly and health-conscious activities.
Business adoption includes the activewear brand Lululemon, which uses VeChain technology in China to verify product authenticity, enhancing consumer trust. Additionally, VeChain has partnered with Rekord to develop Digital Product Passports tailored to the EU Sustainable Products Regulation (ESPR) for compliance and supply chain transparency. Other ventures include collaborations related to real-world assets and tokenization projects.
In partnership with the Ultimate Fighting Championship, VeChain helped create the Build Your Body app offering workouts from UFC champions and rewards for fan engagement. UFC CEO Dana White joined VeChain as an advisor and publicly revealed a $1.2 million investment in VET tokens as part of this collaboration. This focus on practical applications illustrates VeChain’s commitment to delivering tangible benefits beyond speculation.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- TMGM launches 11th Global Trading Competition with a historic $671,500 prize pool up for grabs
- Circle gets license to operate in Abu Dhabi International Financial Center
- Malicious VS Code Extensions Steal Developer Data, Removed by Microsoft
- Bernstein Predicts Bitcoin Rally to $150K, Breaking 4-Year Cycle
- Zcash Proposes Dynamic Fee Market to Tackle Rising Transaction Costs
