VeChain Reveals Major Tokenomics Overhaul with Renaissance Upgrade

VeChain has introduced its most significant economic upgrade since launch, named Renaissance, which brings transformative changes to its tokenomics. The changes prioritize staking and make VTHO more scarce.

Key Changes:

• No more passive $VTHO earnings
• Inflation slashed by 72.2%
• Increased burning of tokens
• Staking is now the key to rewards

Details of the Renaissance Upgrade:

The enthusiast highlights that previously, VeChain holders earned VTHO passively; now, rewards are given to active participants who stake their VET. This shift ensures that incentives go to network contributors rather than idle holders.

What It Means for VET and VTHO:

VET holders must stake to earn VTHO. Validators running the network receive 30% of block rewards, while delegators who stake and assign Staking NFTs share 70% of the rewards. New staking tiers provide differentiated rewards, where Validators must stake 25 million VET for maximum rewards.

Early staking offers higher yields (up to 12.8% APY if 10 billion VET is staked), but rewards decrease as more participants join. This enhances the scarcity of VTHO.

With a reduction in inflation and a commitment to burning 100% of base transaction fees, the Renaissance upgrade aims to create a sustainable blockchain economy for VeChain. However, its success ultimately depends on market response.