VeChain Updates Tokenomics with Dynamic VTHO Issuance Model

VeChain shifts VTHO issuance to a dynamic model tied to VET staking, enhancing rewards, security, and decentralization with mainnet upgrade starting December 2, 2025.

  • VeChain updates its VTHO token issuance from a fixed to a dynamic model based on VET staking.
  • The new system links VTHO creation directly to the amount of VET tokens staked by users.
  • Dynamic issuance aims to reward active network participants, support validators, and improve decentralization.
  • The transition from PoA to DPoS testnet occurred on November 11, 2025, with mainnet activation starting December 2, 2025.
  • Users are encouraged to stake VET tokens via the VeWorld app to begin earning VTHO rewards.

VeChain announced an update to its VTHO token generation schedule as part of the Hayabusa Upgrade, phase 2 of VeChain Renaissance. Starting December 2, 2025, VTHO issuance will shift from a fixed rate to a dynamic model tied to the total amount of VET tokens staked by users across the network.

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Previously, VTHO was generated at a fixed rate of 5 × 10⁻⁹ VTHO per VET per second, equating to approximately 0.000432 VTHO daily for each VET token, with total network issuance near 13.7 billion VTHO annually. Under the new model, issuance depends on staking participation. For example, if 2.525 billion VET (2.61% of total supply) is staked, about 3.86 billion VTHO will be issued yearly, which is 21.87% of current VTHO inflation. If up to 60 billion VET (75% of supply) is staked, issuance could rise to approximately 19 billion VTHO per year, equal to 138.6% of current inflation.

This change rewards active contributors and strengthens decentralization, VeChain stated. VTHO will only be distributed to staked VET, supporting validators who help secure the network. The adjustments aim to provide fairness by linking rewards to actual participation, improve network security through greater staking and delegation, and align stakeholders by connecting issuance to network use and community commitment.

The testnet successfully transitioned from Proof of Authority (PoA) to Delegated Proof of Stake (DPoS) on November 11, 2025. The mainnet activation phase begins on December 2, 2025, with a transition period lasting until December 9, 2025. No VTHO will be issued during this initial seven-day rewards cycle. Full implementation of the dynamic issuance model follows after this period.

Users holding $VET are advised to use the VeWorld app to stake their tokens through the StarGate feature and start earning VTHO rewards ahead of the mainnet upgrade. New users can acquire $VET on major exchanges or directly within VeWorld to participate in the staking program.

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Developers can access the StarGate testnet to explore the updated delegator and validator workflows and provide feedback in preparation for the full network transition.

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