VeChain’s VTHO Transition: Dynamic Tokenomics Under Hayabusa Upgrade

VeChain has announced a significant shift in its VTHO tokenomics as part of the Hayabusa Upgrade, according to VeChain Official. The upgrade, which marks phase 2 of the VeChain Renaissance, transitions VTHO generation from a static to a dynamic model, aligning issuance with user participation and the total VET staked across the network.

Before and After Hayabusa

Prior to the Hayabusa Upgrade, VTHO was generated at a fixed rate of 5 × 10⁻⁹ VTHO per VET per second, translating to approximately 0.000432 VTHO per VET daily. The network’s annual issuance was around 13.7 billion VTHO. Post-upgrade, the issuance becomes dynamic, depending on the total VET staked. For instance, with 2.525 billion VET staked, the network is expected to generate approximately 3.86 billion VTHO annually, while a staking of up to 60 billion VET could result in about 19 billion VTHO per year.

Benefits of the New Model

The transition to a dynamic issuance model brings several advantages. It rewards active contributors, enhances decentralization, and ensures that VTHO distribution is tied directly to staked VET. This adjustment introduces three key benefits:

1. Fairness: Rewards are based on real participation rather than idle holdings.
2. Security and Resilience: Increased staking supports a healthier validator set, boosting network security.
3. Stakeholder Alignment: The issuance reflects network use and community commitment, aligning value earned with value provided.

Transition Timeline

The transition to the new model began on November 11, 2025, with a successful move from PoA to DPoS on the testnet. The mainnet activation is set for December 2, 2025. A transition period from December 2 to December 9, 2025, will see no VTHO issuance during the initial seven-day rewards cycle. After this period, the dynamic issuance model will be fully operational.

Next Steps for Users and Developers

VeChain encourages users to download the VeWorld app to facilitate easy and secure staking. Existing VET holders can start staking via the ‘Earn’ tab to earn VTHO rewards. Those new to VET can acquire it on major exchanges or directly within VeWorld to participate in the program ahead of the mainnet launch.

Developers are invited to explore the StarGate testnet to try out the new delegator and validator flows, providing feedback to further enhance the system.

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