What is VeThor Token (VTHO)?

Deep Dive

1. Purpose & Value Proposition

VTHO acts as the operational fuel for the VeChainThor blockchain, ensuring enterprises can predictably budget transaction costs without exposure to VET’s price swings. By separating the protocol token (VET) from gas (VTHO), VeChain stabilizes network fees—critical for supply chain and IoT use cases requiring cost certainty (VeChain Docs).

2. Tokenomics & Governance

VTHO is generated passively by staking VET, with its supply dynamically adjusted through a dual-issuance model:
- Generation Rate: VET holders earn VTHO at a fixed rate (e.g., 0.000432 VTHO per VET daily).
- Burn Rate: Transactions destroy VTHO, creating deflationary pressure.
A 2025 upgrade introduced dynamic block rewards, shifting VTHO issuance to active stakers to reduce inflationary risks (StarGate Announcement).

3. Ecosystem Innovations

The July 2025 VeChain Super dApp enabled users to pay fees in any token (e.g., stablecoins), with smart contracts auto-converting to VTHO behind the scenes. This abstraction layer simplifies onboarding while maintaining VTHO’s role as the settlement asset, aligning with VeChain’s enterprise focus on usability (VeChain Tweet).

Conclusion

VTHO’s hybrid model—combining predictable gas costs, staking-derived supply, and flexible payment rails—positions it as a critical enabler of VeChain’s enterprise blockchain solutions. As fee delegation gains traction, will VTHO’s burn rate sustainably offset its generation, or will new demand drivers emerge?