VeChain

What is VeChain?

VeChain is a public blockchain aimed at businesses that want to track products and data, and at consumer apps that reward sustainable habits. It uses two tokens: VET, which is held and staked, and VTHO, which pays transaction fees.

What it’s used for

Businesses have used VeChain to log product origins and carbon-related data, and VeBetter apps reward users for actions like recycling or using reusable cups. VET holders stake through StarGate to help secure the network and earn rewards, while VTHO is spent on transaction fees.

Role of the VET token:

Evidence of real use

• The Hayabusa upgrade, launched with StarGate in December 2025, moved VeChainThor from Proof of Authority to Delegated Proof of Stake. Source
• StarGate documentation describes VET staking and delegation under the Hayabusa hard fork. Source
• VeChain's 2026 roadmap centers on the VeBetter ecosystem and agent-driven automation. Source

How VeChain works

VeChain separates value from fees. VET is the main token people hold and stake, and holding or staking VET generates VTHO over time. VTHO pays for transactions, so businesses can plan costs without having to spend their VET. Part of each fee is burned, removing that VTHO from circulation. Separating the two tokens also lets companies estimate costs without worrying about swings in VET's market price.

Until late 2025, blocks were produced by 101 Authority Masternodes operated by known entities and approved by the VeChain Foundation. The Hayabusa upgrade introduced delegated proof of stake: VET holders can stake through StarGate or back validators, earning protocol rewards for securing the network. Staking participation grew quickly in the first months after launch, according to VeChain. VeChain reports that staked VET rose from about 2.5 billion to 13 billion tokens in the first three months, though the new design has only a short track record so far.

VeChain also supports Ethereum-style smart contracts and fee delegation, which lets an app pay fees on behalf of its users. That design suits consumer apps like VeBetter, where people may never notice they are using a blockchain. Fee delegation is also useful for supply-chain integrations, where a company can cover the cost of writing product data on-chain for its partners.

Key moments

1. 2015VeChain begins as a supply-chain blockchain project.
2. 2018VeChainThor mainnet launches and the old VEN token is swapped for VET.
3. 2025The Hayabusa upgrade and StarGate staking move the chain to delegated proof of stake.
4. 2026VeChain publishes a roadmap centered on VeBetter and agent-driven apps.

Supply

VET has a fixed maximum supply of about 86.7 billion. VTHO is created continuously for VET holders and stakers, and a portion of the VTHO spent on fees is burned, so VTHO supply depends on network use.

Risks to understand

• Decentralization is still maturing after years of foundation-approved block producers.
• Enterprise partnerships do not always translate into lasting on-chain usage.
• Reward-driven app activity may fade if incentives are reduced.
• The two-token model can confuse beginners, who may send VTHO or VET to the wrong place.

Last reviewed October 4, 2026 by The Crypto Guide editorial team. Utility Lens ratings are editorial judgments, not investment advice. Market data from CoinGecko. Spot an error? Request a correction.