• Big news from VeChain! They’ve just unveiled a major tokenomics revamp called the Renaissance Upgrade.
• Key updates? Think: staking taking center stage and VTHO becoming even more limited.
• Plus, VeChain has significantly reduced inflation by 72.2% and ramped up token burning.

Exciting developments in the VeChain world! The blockchain project VeChain has just dropped Renaissance, a game-changing economic upgrade and their most significant yet. This overhaul brings big shifts to their tokenomics, and a passionate web3 expert is here to break down what it all means for the VeChain ecosystem and those holding VET and VTHO. 

VeChain Reveals Major Tokenomics Overhaul: Enter the Renaissance Upgrade

Looking at the tweet above, you can see this enthusiastic expert breaking down the upgrade. She immediately points out the key shifts: say goodbye to passive VTHO earnings, hello to significantly reduced inflation (down by 72.2%), increased token burning, and staking becoming the central way to earn rewards within the VeChain ecosystem. In short, VTHO’s deflationary design is getting a major boost.

Before Renaissance, simply holding VeChain earned you VTHO passively. Now, the focus is on rewarding active participation. Instead of just holding VET, you’ll need to stake it to earn rewards. This change is in line with VeChain’s “Web3 for Better” vision, aiming to motivate network contributors instead of just rewarding passive holding.

So, What Does This Renaissance Upgrade Actually Mean for VET and VTHO Holders?

Let’s get into the specifics: if you’re holding VET, staking is now your path to earning VTHO. The network validators, who keep things running smoothly, will get 30% of the block rewards. The rest, a generous 70%, goes to Delegators – those who stake and use Staking NFTs. The new system also introduces staking tiers and rewards, with Validators needing 25 million VET to participate and, naturally, earning the top rewards.

Now, for Node Delegators: X Node Delegators get a sweet 1.5x boost on rewards, while Economic Node Delegators receive the standard 1.0x rewards. And here’s an incentive for early adopters – staking early can mean higher yields! If, for example, 10 billion VET is staked initially, the APY could jump to 12.8%. But keep in mind, as more people stake, those rewards will adjust downwards. Bottom line? VeChain is definitely making VTHO more scarce.

With inflation taking a massive 72.2% dive and a full 100% of base transaction fees being burned, this new system is clearly designed to tighten up the VTHO supply and reinforce the tokenomics. Overall, this Renaissance upgrade is aimed at building a more sustainable blockchain economy for VeChain. But, as the expert points out, its ultimate success will hinge on how the market reacts – time will tell!