- VeChain opens an all stakeholder vote on August 18 at 12:00 UTC to approve Hayabusa VIP-253 and VIP-254.
- The upgrades move consensus to DPoS and route VTHO rewards to active validators and delegators.
VeChain sets August 18 vote on Hayabusa VIP-253 and VIP-254
Under VIP-253, VeChainThor transitions from Proof of Authority to Delegated Proof of Stake while retaining a set of 101 Validators. Validation opens to any participant that stakes 25 million VET, with entry managed through a first in, first out queue. Block production shifts to stake weighted selection, creating direct incentives for Validators to attract delegation and maintain performance.
Rewards are distributed between network participants, with 30 percent of block rewards allocated to Validators and 70 percent to Delegators through a delegator contract. Stake weights apply across roles, with Validators receiving a 2x factor, X Node Delegators a 1.5x factor, and Economic Node Delegators a 1x factor. During the bootstrapping phase, the StarGate NFT based staking system operates independently, but Hayabusa integrates delegation into the consensus layer by making VET delegation to Validators the basis of operation.
Dynamic issuance replaces fixed VTHO rate and aligns rewards with active staking
VIP-254 proposes to remove the current fixed daily VTHO generation rate of 0.000432 per VET and to introduce dynamic, stake based issuance delivered only through block rewards. The issuance follows an inverse root curve, which reduces VTHO output as the share of staked VET increases. This mechanism targets lower aggregate issuance when participation is high and directs rewards exclusively to active contributors.
The economic changes build on the fee burning mechanism introduced with Galactica on mainnet, which permanently removes a portion of fees from circulation. Together, the shift to stake based rewards and continued fee burning are designed to constrain supply growth and link value accrual to participation in network security and throughput.
Authority Masternodes, Economic Nodes, X Nodes, and new Node holders are invited to participate in the VeVote event. Voting weights reflect Stargate NFT levels or Validator status. Preparations include migrating legacy Nodes ahead of August 17, reviewing the Hayabusa proposals, and arranging credentials for voting. Following approval, the network will proceed with implementation and testing, the transition from StarGate economics to Hayabusa, and the activation of DPoS and updated issuance across VeChainThor.
At the time of writing, VeChain (VET) is trading at approximately $0.02434636 USD, reflecting a $0.00129 decline—or -5.04 %—since 24 hours ago on a crypto price index.
