What is VeThor Token (VTHO)?

Deep Dive

1. Purpose & Value Proposition

VTHO acts as the “fuel” for the VeChainThor blockchain, used to pay for transactions and smart contract operations. By separating VET (governance token) from VTHO (utility token), VeChain stabilizes network costs for enterprises—critical for supply chain, IoT, and sustainability applications. This design shields businesses from VET’s price volatility, as VTHO’s generation rate adjusts based on network demand (VeChain Docs).

2. Tokenomics & Governance

VTHO has no hard supply cap. It’s minted automatically by staking VET (0.000432 VTHO per VET daily) and burned during transactions. Recent upgrades like StarGate staking (July 2025) introduced deflationary pressure by burning excess VTHO and tying rewards to active participation. A governance proposal (VIP-254) aims to replace static VTHO generation with dynamic block rewards, further reducing inflation (VeChain Foundation).

3. Ecosystem Integration

VTHO’s utility extends beyond gas:
- Cross-chain interoperability: Integrated with Wanchain’s bridge (July 2025), enabling VTHO to flow across 40+ blockchains.
- Staking rewards: Used in VeChain’s StarGate program, distributing 5.48B VTHO ($15M) over six months to incentivize network security.
- Enterprise use: Supports fee delegation, allowing companies to subsidize user transactions—key for mass adoption in IoT and supply chain apps.

Conclusion

VTHO is the operational backbone of VeChainThor, balancing predictable costs for enterprises with adaptive tokenomics. Its evolving role—from gas token to cross-chain asset and staking reward—reflects VeChain’s focus on real-world utility. How will proposed tokenomics upgrades reshape VTHO’s scarcity and demand as VeChain scales?