AI Summary
Show More
Quickly grasp the article's content and gauge market sentiment in just 30 seconds!
VeChain, which began as a supply chain blockchain platform, has grown into a Layer 1 (L1) blockchain with a wide range of applications. It stands apart from most blockchains by employing a dual token model, rather than relying on a single native token. In this article, we look at the VeChain Thor Energy (VTHO) token, mainly used for gas in the VeChain ecosystem.
Key Takeaways:
VeChain’s dual-token system, with VET for value transfer and VTHO for gas, maintains a predictable transaction cost for users.
Holding VET generates VTHO as a reward. Seventy percent of VTHO used for gas is burned, and the other 30% is rewarded to authority master nodes.
Upcoming changes to VTHO tokenomics will reward active network participants and link token generation to staked VET, enhancing ecosystem sustainability.
The VeChain token (VET) is used to transfer value across networks. Meanwhile, VeChain Thor Energy (VTHO) is used for gas to execute transactions on the network. On other L1 networks like Ethereum or Solana, the native token is used for both gas and transfer of value. However, VeChain decided to split these functionalities into two different tokens.