The VeChain Renaissance marks a new era of substantial upgrades aimed at improving VTHO tokenomics and enhancing VeChainThor's long-term prospects.
Reimagining VTHO Tokenomics
The VeChain Renaissance represents a significant upgrade transforming VTHO issuance. VTHO generation is now linked to the total VET staked across Delegator and Validator nodes. An important change includes a 72.2% reduction in initial inflation, promoting deflationary trends.
Mechanisms of Scarcity Creation
The Galactica upgrade introduces a complete base fee burn mechanism, with all VTHO used as gas burned permanently. This creates scarcity, enhancing VTHO’s value as network activity grows. The dynamic fee market optimizes transaction costs, while a new priority fee system rewards Validators and Delegators.
Rewarding Active Network Participants
The upgrade eliminates passive VTHO accumulation, rewarding only active validators and delegators. This fosters engagement and strengthens network security. New economic nodes with varying reward tiers have been introduced, making VeChain's economic ecosystem more accessible.
The VeChain Renaissance offers significant changes in tokenomics and governance, promoting sustainable development and network decentralization.
