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 an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
