Deep Dive
1. Hayabusa DPoS & Staking Issuance (December 2025)
Overview: This major upgrade replaced the old system where VTHO was generated simply by holding VET. Now, new VTHO is only created when VET is actively staked, directly tying supply to network participation.
The "Hayabusa" upgrade transitioned the VeChainThor network to a Delegated Proof-of-Stake (DPoS) consensus. Its most significant change for VTHO was overhauling its tokenomics: passive generation was replaced with a staking-based issuance model. This directly links new VTHO supply to the amount of VET actively staked on the StarGate platform, approximately halving the rate at which new VTHO enters circulation compared to the old model.
What this means: This is bullish for VTHO because it creates a built-in scarcity mechanism. With new supply growing much more slowly, increased demand from network usage could put upward pressure on its value over time. It rewards active network supporters over passive holders.
(Bullish)
2. Galactica EIP-1559 Fee Market (July 2025)
Overview: This upgrade made transaction fees on VeChain predictable and introduced a permanent burn mechanism for VTHO, reducing its total supply with every transaction.
Implemented as part of the broader "Renaissance" roadmap, the Galactica upgrade introduced a dynamic gas fee market inspired by Ethereum's EIP-1559. In this system, each transaction fee is split into a base fee, which is permanently burned (destroyed), and a priority tip for validators. This means a portion of the VTHO used for gas is removed from circulation forever.
What this means: This is bullish for VTHO because it adds a deflationary burn to the token's economics. As more people use the VeChain network for dApps or transactions, more VTHO is destroyed, which could help support its price by counteracting new supply from staking.
(MEXC News)
Overview: This release created a dedicated staking platform, moving VTHO reward distribution to a more efficient and rewarding NFT-based model.
The StarGate platform launch marked a shift from the old, passive VTHO generation. It introduced staking tiers represented by NFTs, which users must hold to earn rewards. The platform quickly saw 10 billion VET delegated, demonstrating strong adoption. A 5.48 billion VTHO bonus pool was also launched to incentivize early stakers over a six-month period.
What this means: This is bullish for VTHO because it makes earning rewards more engaging and potentially more lucrative for VET holders who actively stake. Higher staking rewards can encourage more people to lock up their VET, which can reduce selling pressure on the broader ecosystem.
(VeChain)
Conclusion
The VeChainThor codebase has undergone a transformative year, shifting VTHO from an inflationary, passively-generated token to one with staking-driven issuance and transaction-fueled deflation. Will rising network activity outpace the new, slower supply growth to create sustained value for VTHO holders?