VeChain has officially launched its Renaissance project, marking a significant transformation in its blockchain ecosystem. Following the Galactica vote, the upgrade introduces a revamped staking system, moving away from passive rewards to an NFT-based model designed to boost network engagement and redefine VeChainThor’s tokenomics.
A New Era of Staking: Rewarding Active Participants
Under the Renaissance framework, VeChain eliminates the automatic generation of VTHO from VET holdings. Instead, users must actively stake their VET to earn rewards, ensuring a more decentralized and secure network. A key component of this shift is the introduction of Staking NFTs, which allow users to lock their assets while benefiting from a more dynamic rewards structure. This strategic change follows a series of major milestones achieved by the network in February.
The updated staking system introduces Delegator NFTs, which categorize VET commitments into different tiers. Block rewards are now distributed with 70% allocated to Delegators and 30% to Validators—the latter also receiving 100% of priority fees from transaction activity. This restructuring is expected to enhance incentive mechanisms, fostering greater participation in the ecosystem.
Weighted Staking: Governance and Reward Tiers
VeChain’s governance structure is also evolving with a weighted staking mechanism that determines reward distribution:
- Validators receive a 2.0x staking weight, maximizing earnings.
- X-Node Delegators benefit from a 1.5x weight, offering an advantage over standard economic nodes.
- Economic Node Delegators hold a 1.0x weight, maintaining equal participation.
Initial forecasts predict Delegators could earn up to 12.8% APY, while Validators may see rewards around 20% APY, with fluctuations based on network activity.
Expanded Node Tiers for Greater Accessibility
To widen staking participation, VeChain is introducing three new economic node tiers:
- Dawn Node (10,000 VET) – 1.0x reward multiplier.
- Lightning Node (50,000 VET) – 1.15x reward multiplier.
- Flash Node (200,000 VET) – 1.3x reward multiplier.
These join existing high-tier nodes like Mjolnir, Thunder, and Strength, offering progressively higher multipliers.
VeChain has also announced an Early Bird Staking Program, launching July 1, 2025, with a 3 billion VTHO distribution (~$10 million) to incentivize early adopters before the upcoming Hayabusa upgrade in December 2025.
Moreover, the Renaissance upgrade aims to stabilize VeChain’s economy by burning 100% of base transaction fees and reducing VTHO inflation to 27.8% of previous levels. These measures are expected to enhance token scarcity while ensuring sustainable rewards for active participants.
Also Read: VeChain Revamps Tokenomics: Can VET’s New Model Spark a Major Comeback?
With these sweeping changes, VeChain is positioning itself as a more dynamic, secure, and rewarding blockchain ecosystem, setting the stage for a new era of decentralized engagement.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
