VeChain’s Major Update Set to Transform Staking and Tokenomics in 2025
VeChain is gearing up for a major overhaul with the upcoming Renaissance update, aimed at enhancing its staking structure and tokenomics.
The update’s primary objective is to drive greater decentralization, stimulate more active participation in the network, and increase the utility of the VET token. As the broader crypto market shows signs of recovery, attention is turning to the launch of the Early Bird Staking Program, set to debut in July 2025.
With the Renaissance update, VeChain is transitioning from a passive VTHO generation model to an active staking system. Under the new system, VET holders will need to stake their tokens to earn rewards. This shift also introduces staking NFTs, which correspond to different levels of commitment, offering varying annual percentage yields (APYs) based on the tier of staking. Validators at the top level can earn up to 20% annually, while node delegates can earn as much as 12.8%, marking a significant increase in returns compared to the previous model.
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To make participation more accessible, VeChain has lowered the entry threshold for economic nodes to just 10,000 VET, making it easier for a broader range of individuals to get involved.
In anticipation of the Hayabusa upgrade in December 2025, VeChain will launch the Early Bird Staking Program in July, aiming to generate interest and engagement ahead of time. This program will distribute 3 billion VTHO tokens to early stakers, creating a strong incentive for users to participate and further integrate into the VeChain ecosystem.
Alongside these changes, the Renaissance update will introduce significant economic adjustments. One key change is the burning of 100% of the base transaction fees, a move designed to reduce supply and potentially increase the token’s value. Additionally, VTHO inflation will decrease by 72.2%, making the token more deflationary and possibly enhancing its long-term worth.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
