VeChainThor Ecosystem Expansion with New Vechain Improvement Proposals (VIPs)

The VeChainThor ecosystem is set for expansion with new Vechain Improvement Proposals (VIPs).
Through the Galactica innovation, the protocol aims to expand the Renaissance upgrade.

VeChain (VET) is advancing its significant Renaissance upgrade with the introduction of Galactica. This initiative is part of the broader VeChain Renaissance project, aiming to reshape the platform’s technical and economic foundations.

Introducing Galactica VIPs

The Galactica phase introduces four key VeChain Improvement Proposals (VIPs) designed to enhance the blockchain’s capabilities. These proposals mark the beginning of a journey that fundamentally reshapes the foundations of the VeChainThor blockchain.

The four proposals are:
1. Gas Fee Market
2. Typed Transactions
3. EVM Upgrade
4. Extension Contract Update

Each proposal is tailored to optimize VeChain’s performance and improve compatibility with other blockchain technologies. They also provide a robust framework for future developments.

Inspired by Ethereum EIP-1559, VIP-251 replaces the current fixed-fee model with a dynamic fee market, burning 100% of base fees and accelerating VTHO’s path to deflation. This model enhances overall gas consumption and optimizes network performance.

VIP-252 introduces a standardized transaction envelope format, transforming how VeChain processes blockchain activities. This allows better identification and management of various transaction types and simplifies contract interactions.

The effort ensures smooth integration of new features, enabling the protocol to evolve without disrupting network activities or fragmenting the ecosystem.

The third proposal, VIP-242, aligns VeChainThor with recent Ethereum Virtual Machine (EVM) advancements, allowing developers to utilize Ethereum-native tools and applications, thereby increasing the VeChainThor ecosystem’s breadth.

The fourth proposal, VIP-250, enhances developer efficiency by introducing new functions simplifying contract execution, exemplifying VeChain’s commitment to a developer-friendly environment conducive to complex decentralized applications.

Galactica, marking the first phase of the VeChain Renaissance, lays a crucial technical foundation for subsequent phases, Hayabusa and Interstellar. These upgrades signify more than technical enhancements; they herald the strategic evolution of VeChainThor into a prominent force in blockchain adoption.

Galactica VIPs Voting

Voting for these VIP upgrades began on February 24, inviting all stakeholders—including Authority Masternodes, Economic Nodes, and X Nodes—to participate in shaping the future of VeChainThor. This democratic process underscores VeChain’s commitment to community engagement and decentralized governance.

As noted earlier, the VeChain Renaissance introduces a new staking system transitioning from passive rewards. This restructuring promotes network participation via an NFT-based staking scheme while redefining VeChainThor’s tokenomics.

The new staking system features Delegator NFTs, representing varying levels of VET commitment. 70% of block rewards will be allocated to Delegators, while the remaining 30% will go to Validators and block producers.