Vechain [Token]: Web3 for Better

What is Vechain [Token]

Friends, imagine we live in a world full of goods, from the coffee cup in your hand to the shoes you wear, all of which have gone through a long journey to reach you. This journey includes production, transportation, storage, and finally sales. Along the way, we often encounter some problems: for example, how do you know if a product is genuine? Was its production process up to standard? Was it properly handled during transportation? This information is often opaque and even prone to tampering.

VeChain, on the other hand, is like a super detective, using blockchain technology specifically to solve these problems. It is a powerful blockchain platform designed to fundamentally change supply chain management and business processes. Simply put, VeChain aims to make the entire lifecycle of goods transparent, traceable, and difficult to tamper with.

The core of VeChain is like a “dual-token system”: it has two main digital tokens, VET (VeChain Token) and VTHO (VeChainThor Energy). You can think of VET as the “equity certificate” or “value carrier” in the VeChain world, while VTHO is the “fuel fee” you need to pay for various operations on the VeChain network (such as recording product information). This design is intended to make business operating costs more stable, so they don’t fluctuate wildly with the price of VET—just like gas prices are relatively stable and don’t swing with the value of car brands.

Initially, VeChain focused on supply chains, helping companies track product quality, authenticity, storage temperature, and transportation process. From the factory to the end consumer, key information can be broadcast to the blockchain network in real time via smart chips or RFID tags and sensors, accessible to authorized parties. Now, its application scope has expanded to support decentralized applications (dApps) and Internet of Things (IoT) devices, and it has even made moves in sustainability and Web3 fields.

Project Vision and Value Proposition

VeChain’s vision is like building a “bridge of trust.” It hopes to establish a trustless, decentralized business ecosystem platform where information flows transparently, collaboration is efficient, and value transfer is rapid. Imagine if all product information were as if carved in stone—public, transparent, and immutable—then counterfeit goods would have nowhere to hide, and consumers could buy with greater confidence.

The core problem VeChain wants to solve is the obstacles enterprises face when adopting blockchain technology. It believes the biggest obstacles are not technical, but rather issues in other key aspects of blockchain operational design, such as lack of suitable governance models, economic models, and regulatory compliance capabilities. Therefore, VeChain is committed to providing a platform that supports blockchain business applications with real economic and social value.

Compared to similar projects, VeChain’s uniqueness lies in its deep focus on enterprise-level applications and its dual-token economic model. This model is designed to provide enterprises with predictable transaction costs, which is crucial for large-scale business applications. In addition, VeChain has established strategic partnerships with many well-known companies such as PwC, Renault, Walmart, DNV, and Boston Consulting Group (BCG), demonstrating its strong real-world application capabilities.

In recent years, VeChain has also set its sights on the field of sustainability, launching the “Web3 For Better” whitepaper in collaboration with Boston Consulting Group, aiming to use blockchain technology to address global sustainability challenges and incentivize users and enterprises to take sustainable actions. It’s like putting a “tracker” on the environment, so every eco-friendly action can be recorded and rewarded.

Technical Features

The technical core of VeChain is its VeChainThor blockchain platform. You can think of it as a highly customized “digital ledger” designed specifically for enterprise-level applications.

In terms of consensus mechanism, VeChain currently uses a mechanism called Proof-of-Authority (PoA). This is like a committee made up of a small number of “authority nodes” (Authority Masternodes) that have been strictly vetted and identity-verified, responsible for validating transactions and maintaining network operations. There are currently 101 such nodes. The advantage of this mechanism is high efficiency and fast transaction speed, which is very suitable for the performance requirements of enterprise applications. However, it has also been criticized for its relatively high degree of centralization, which we will discuss in detail in the risk section.

However, VeChain is actively upgrading its technology. As part of its “VeChain Renaissance” roadmap, it plans to transition to a consensus model called Weighted Delegated Proof-of-Stake (dPoS) in December 2025. This is like evolving from a system managed by an expert committee to one where more community members participate in voting and delegation, aiming to increase the network’s decentralization.

To achieve its supply chain tracking goals, VeChain leverages IoT technology, such as smart chips or RFID tags and sensors. These devices can upload real-time information about goods in the physical world (such as location, temperature, etc.) to the blockchain, ensuring data authenticity and immutability. It’s like giving every product a “digital ID card” and “real-time monitor.”

In addition, VeChain’s “Renaissance” roadmap includes building Ethereum-compatible infrastructure, such as EVM compatibility (Ethereum Virtual Machine compatibility) and JSON RPC integration. This means developers will find it easier to build and deploy Ethereum-based applications on the VeChain platform, attracting more developers and projects to the VeChain ecosystem.

VeChain also features a unique function called “transaction dependency,” which ensures that specific transactions are executed in a preset order—crucial for complex business processes.

Tokenomics

VeChain’s tokenomics are unique in that it adopts a dual-token system, namely VET (VeChain Token) and VTHO (VeChainThor Energy).

VET (VeChain Token)

Basic Information: VET is the main value carrier and governance token in the VeChain ecosystem. You can think of it as the “stock” of the VeChain network. Holding VET not only represents your share of value in the network, but also gives you the right to participate in network governance, such as voting on important decisions.

Total Supply: The total supply of VET is hard-capped at 86,712,634,466, meaning no more VET will ever be created, thus avoiding the risk of inflation.

Token Use Cases:

• Value Storage and Transfer: VET is the main value carrier in the VeChain network and can be used for payments and economic incentives.
• Staking: Holding and staking VET helps maintain network security, and in return, stakers receive VTHO rewards. VeChain launched a new staking platform called “Stargate” on July 1, 2025, allowing VET holders to stake VET via smart contracts.
• Governance: VET holders can participate in VeChain network governance, voting on proposals for protocol upgrades and important parameter adjustments.

VTHO (VeChainThor Energy)

Basic Information: VTHO is the “fuel token” or “gas fee” of the VeChain network, used to pay for transactions and smart contract execution on the VeChainThor blockchain. You can think of VTHO as the “energy” you need to consume when using the VeChain network.

Generation Mechanism: VTHO is automatically generated by holding VET. This means as long as you hold VET, you will continuously generate VTHO, just like owning an electric car that automatically generates the electricity you need for charging.

Inflation/Burn: The issuance and burning mechanism of VTHO is dynamically designed to reduce its supply as network activity grows. The more transactions on the network, the greater the consumption of VTHO, which helps maintain VTHO’s value and provides enterprises with relatively stable transaction costs.

Token Distribution and Unlocking

Most VET tokens are in circulation among users, with the remainder used to support the VeChain Foundation’s reserves, development funds, and ecosystem growth.

Tokenomics Updates in VeChain Renaissance

As part of the “VeChain Renaissance” roadmap, VeChain is revising VTHO’s tokenomics, including a new staking model, dynamic gas fee model, and the establishment of a developer fund, to better incentivize network participants and ecosystem development.

Team, Governance, and Funding

Team

VeChain has an experienced core team, with multiple offices worldwide and over 100 full-time employees, half of whom are blockchain developers.

• Sunny Lu: Co-founder and CEO. Former CIO of Louis Vuitton China, with nearly 20 years of experience in IT management.
• Jay Zhang / Jie Zhang: Co-founder and CFO. Former senior manager at Deloitte and PwC, with over 14 years of experience in finance and accounting management.
• Jianliang Gu: VP of Technology. Over 16 years of experience in hardware and software embedded systems development and IT management.
• Antonio Senatore: CTO.

Governance

VeChain’s governance structure aims to balance efficiency and decentralization, but its degree of centralization has always been a focus of discussion.

• VeChain Foundation: The supervisory body of the VeChainThor blockchain and ecosystem, headquartered in San Marino, Europe. The Foundation is responsible for maintaining, developing, and advancing the VeChain ecosystem and making real-time decisions.
• Board of Steering Committee: This is the management body of the VeChain Foundation, representing the interests of all stakeholders and responsible for setting the Foundation’s strategy. The committee consists of 7 members, including founders and members from PwC and DNV GL. Every two years, all stakeholders can vote to elect members of the Steering Committee.
• Consensus Mechanism and Decentralization: VeChain currently uses the Proof-of-Authority (PoA) consensus mechanism, which, while efficient, is run by 101 KYC-verified authority masternodes and has been criticized for its relatively high centralization. However, as part of the “VeChain Renaissance” upgrade, VeChain is working towards greater decentralization, including introducing a new governance model and planning to transition to a Weighted Delegated Proof-of-Stake (dPoS) model in December 2025.

Funding

VeChain conducted its initial coin offering (ICO) in 2017. According to reports, as of Q2 2025, VeChain’s treasury funds are about $167 million.

Roadmap

Since its founding in 2015, VeChain has gone through several important stages and continues to pursue ambitious future plans.

Key Historical Milestones and Events

• 2015: VeChain project founded.
• 2017: Initial coin offering (ICO) conducted.
• 2018: VeChain launched its own mainnet—VeChainThor blockchain—and converted the original VEN token to VET, introducing the VTHO token.

Future Key Plans and Milestones (VeChain Renaissance)

“VeChain Renaissance” is a comprehensive upgrade of the VeChainThor protocol, aiming to better serve stakeholders and adapt to technological and regulatory trends, promoting network growth in users, developers, and integrations.

• Q1 2025 (Galactica Foundation Stage): Submitted VeChain Improvement Proposals (VIPs) related to the Galactica hard fork, including a dynamic gas fee model and Shanghai EVM upgrade.
• Q2 2025 (Galactica Mainnet Implementation): Galactica transitions to mainnet, introducing the dynamic fee model and Shanghai EVM upgrade to VeChainThor.
• July 1, 2025: VeChain launched the new staking platform “Stargate,” allowing users to stake VET via smart contracts.
• Q3 2025 (Hayabusa Launch): Submitted VIPs related to the Hayabusa phase, introducing new tokenomics, staking opportunities, improved VTHO consumption/distribution model, and changes to the consensus mechanism. Node holders will participate in Hayabusa’s all-stakeholder voting.
• August 2025: VeChain partnered with BitGo, Keyrock, and Franklin Templeton to strengthen its institutional presence.
• December 2025: VeChainThor network will undergo the Hayabusa hard fork and launch the Stargate mainnet. At the same time, the consensus mechanism will transition from Proof-of-Authority (PoA) to Weighted Delegated Proof-of-Stake (dPoS).
• End of 2026: Final stage of governance model transformation expected to be completed.

Common Risk Reminders

Any blockchain project, including VeChain, comes with certain risks. Understanding these risks is crucial for making informed decisions. Please remember, this is not investment advice.

• Centralization Risk: VeChain’s current Proof-of-Authority (PoA) consensus mechanism and governance structure are considered relatively centralized by some critics. A small number of authority nodes and the Steering Committee hold significant decision-making power, which may raise concerns about data integrity and network security. If these centralized entities are attacked or compromised, it could affect the trustworthiness of the entire network. While VeChain is working to transition to a more decentralized dPoS model, the actual effect and degree of decentralization remain to be seen.
• Economic Risk: VET token price fluctuations may affect the cost of VTHO. If VET’s price rises sharply, the VTHO cost for enterprises using the VeChain network will also increase, potentially reducing its appeal to businesses. In addition, reports indicate that VeChain’s treasury funds declined in Q2 2025, which may raise concerns about the project’s long-term financial stability.
• Competition and Adoption Challenges: Despite VeChain’s many partners, the blockchain field is highly competitive, with other blockchain projects and traditional solutions constantly evolving. Whether VeChain can continue to attract new enterprises and users and achieve large-scale real-world adoption is key to its long-term success.
• Market Volatility Risk: Like all cryptocurrencies, VET’s price is affected by overall crypto market volatility, macroeconomic factors, and investor sentiment. Its price may be far below historical highs, and recovery may be slower than other tokens.
• Compliance and Operational Risk: The global regulatory environment for cryptocurrencies is still evolving, and future regulatory changes may impact VeChain’s operations and development.

Verification Checklist

To gain a deeper understanding of the VeChain project, you can verify and research through the following channels:

• Official Website: Visit VeChain’s official website vechain.org for the most authoritative project information, latest updates, and official announcements.
• Whitepaper: Carefully read VeChain’s whitepaper to understand its technical details, economic model, and future plans. You can find it on the VeChain website or on whitepaper.io and other platforms.
• Block Explorer: Use the VeChainThor Block Explorer to check VET and VTHO contract addresses, transaction records, token holder distribution, and other on-chain data to ensure transparency.
• GitHub Activity: Visit VeChain’s GitHub repository to check code update frequency and developer contributions, which reflect the project’s development activity and community engagement.
• Official Wallet: Download and experience VeChain’s official wallet VeWorld to understand its features and user experience. It is also the entry point for managing VET, viewing NFTs, and exploring ecosystem applications.

Project Summary

Friends, from the above introduction, we can see that VeChain is a very interesting blockchain project. It’s not just a concept, but is committed to applying blockchain technology to real-world business scenarios, especially in supply chain management and sustainability. It’s like a “digital steward,” helping businesses and consumers better track and verify the origins of goods, making information more transparent and thus improving efficiency and trust.

VeChain’s dual-token economic model (VET and VTHO) is a major feature, designed to provide enterprises with stable operating costs, which is very important for large-scale business applications. At the same time, it has established partnerships with many well-known companies, providing a solid foundation for its technology to be implemented.

Of course, VeChain also faces some challenges, such as its consensus mechanism’s degree of centralization, which has been questioned. But the project team is actively promoting decentralization and technical upgrades through the “VeChain Renaissance” roadmap, including transitioning to a more open dPoS consensus model and enhancing compatibility with the Ethereum ecosystem. These efforts show that VeChain is constantly evolving to adapt to the changing blockchain landscape.

Overall, VeChain is a project with potential, making many explorations in connecting blockchain with the real economy. But like any emerging technology, it also comes with risks, including market volatility, competitive pressure, and governance structure considerations. Therefore, if you are interested in this project, be sure to conduct your own in-depth research, and remember, all the above information is for reference only and does not constitute any investment advice.