- VeChain shifts to active staking with Staking NFTs, replacing passive VTHO generation.
- The new weighted governance model prioritizes Validators and high-tier Delegators.
VeChain has unveiled a major shift in its tokenomics model by introducing Staking NFTs, revolutionizing rewards for network participants. This change follows the successful Galactica Upgrade vote and marks the beginning of VeChain Renaissance, a broad initiative aimed at enhancing decentralization and ecosystem incentives.
The new system replaces passive VTHO generation with an active staking model, rewarding users who secure and govern the network. VeChain also launched an Early Bird Staking Program with a $3 billion VTHO allocation, worth $10 million, to encourage early adoption.
Staking NFTs Reshape VeChain’s Tokenomics Model
With the new staking system, VET holders must actively stake their tokens to earn VTHO instead of the previous passive generation model. Users can now mint Staking NFTs by locking up VET, with tiers based on the amount staked. Delegators (who stake VET through Validators) will get 70% of the block rewards, while Validators (the block producers) will get 30%, along with priority fees from the dynamic gas market.
The reward structure includes newly generated VTHO, priority fees, and bonuses based on the Node tier. The system also introduces a weighted governance model where different staking levels influence block production probabilities. Validators have the highest effective weight at 2.0x, X-Node Delegators at 1.5x, and Economic Node Delegators at 1.0x. Estimates suggest Delegators will start with an annual percentage yield (APY) of 12.8%, while Validators will get up to 20%, though rates will decrease as more users participate.
New Node Tiers Open Up More Opportunities
VeChain is reorganizing its Node system to open up more participation while keeping exclusivity for high-tier participants. Existing Economic and X-Node holders will switch to the Delegator System and retain their status and privileges. Delegators can mint their new NFTs by swapping their old Node NFTs and staking the required VET amount.
The new structure introduces lower-entry tiers such as the Dawn Node (10,000 VET), Lightning Node (50,000 VET), and Flash Node (200,000 VET), offering multipliers of up to 1.3x. Meanwhile, higher-tier nodes, such as Mjolnir X (15,600,000 VET), provide up to a 5.0x multiplier. Maturity periods for new nodes are set at 2 to 15 days, while higher-tier nodes have extended periods of up to 60 days. X-Nodes retain their permanent status but will be destroyed if unstaked, consistent with the existing system.
Early Bird Staking Program Offers Exclusive Rewards
VeChain is launching an Early Bird Staking Program on July 1, 2025, with significant rewards before the Hayabusa Upgrade in December. The program will distribute 3 billion VTHO to early participants with up to 3x the current rewards for the highest tier holders. Rewards will be distributed through smart contracts in 14-day cycles, and Delegators can switch Validators or withdraw at the end of each cycle.
Validators are crucial for network security and require a minimum stake of 25 million VET. The new system removes KYC for Validators, making it more decentralized. Upon Hayabusa Upgrade, existing Authority Masternodes will become Validators and secure the network through consensus participation.
VeChain is moving to an active staking model and is burning 100% of base transaction fees, reducing VTHO inflation to 27.8% of current levels. As staking increases, inflation will gradually go up to support the ecosystem, and 30 billion VET staked will reach 98% of current VTHO issuance. The introduction of priority fees will give additional rewards to Validators and Delegators and align the incentives with network growth.
Market Reaction and VeChain’s Growing Influence
VeChain’s recent developments have seen strong market performance. As of now, VET is trading at $0.029155, with a 24-hour trading volume of $59,023,735, up 5.5%. Other ecosystem tokens like VTHO have also risen by 3%. Trading pairs VET/BTC and VET/ETH are up 4.5% and 4.8%, respectively, showing investor confidence.
VeChain also has U.S. patents for property rights transfer and workflow node certification, as reported by ETHNew. The latest patent, awarded to NanoJClean on March 4, 2025, is for digital property confirmation and transfer. Analysts predict VET to rise 16.5% by mid-March as buying pressure is strong and technicals are looking bullish.
The post VeChain Introduces Staking NFTs—A Game Changer for Rewards appeared first on ETHNews.
