The economic model is one of the key factors that will determine the success of any coin. A balance should be found between costs and benefits for all stakeholders.
On this page, i will give you a complete overview of everything we know so far about the VeChain economy.
Table of Contents
- 1 A two-coin system
- 2 Nodes
- 3 Thor generation
A two-coin system
In order to prevent fees for using the blockchain from being directly related to the price volatility of VeChain, the economy consists of two coins which are closely related:
VeChain token (VET)
Use case: Store of value and smart payment currency.
How to get: You can currently buy it from the open market. Strategic partners can buy from a dedicated pool.
Thor power (VeThor)
Use case: needed to interact with the blockchain for certain operations, like executing smart contracts and transferring vet.
How to get: You will generate Thor when having VET. Expected to be tradeable on the open market (exchanges).
When a certain amount of VeChain is placed inside a traceable wallet, it can become a node. There are various types of nodes, which all have different benefits, functions, and requirements.
The nodes can be divided into two types of nodes:
The authority (also called thrudheim masternodes) are used to validate the blockchain. Authority nodes have the highest requirements, but also gives you access to the biggest benefits.
- There will only be 101 authority nodes
- Are selected and rated by the VeChain foundation and require a full KYC and application procedure.
- Need dedicated hardware for blockchain validation.
- A minimum of 250.000.000 VET is required.
- Receives the highest Thor production rate and voting rights.
The economic nodes are not used to validate the blockchain, but offer stability to the ecosystem and provide benefits compared to regular VeChain owners. Economic node holders get higher thor production rates compared to none-node vechain owners.
- A minimum of 600.000 VET is required to gain access to the smallest node before March 20, 2018 and 1.000.000 Vet after March 20th.
- No hardware is required, just place your vet into a traceable wallet (no exchange, we suggest using the VeChainThor mobile wallet).
To get an economic node, a certain amount of vet has to be placed in the Thor Power forge (part of the VeChain wallet, more information on this will get released once we move closer the launch of main net) for a certain amount of time (the maturity period).
Normal economic nodes
- 15.000.000 VET
- 30 day maturity period
- 5.000.000 million VET
- 20 day maturity period
- 1.000.000 VET
- 10 day maturity period
Important notes about economic nodes:
- You can upgrade and downgrade between nodes.
X economic nodes
The Economic X nodes program was launched as an additional reward for early VeChain supporters. The X Node program gives VeChain owners a once in a lifetime to lock
Mjolnir X Node
- 15.600.000 VET needed
- 90 day maturity period when upgrading from a Thunder X Node
- If your wallet drops below 15.600.000 VET at any time, you will lose your X status forever.
Thunder X Node
- 5.600.000 VET needed
- 60 day maturity period when upgrading from a Strength X Node
- If your wallet drops below 5.600.000 VET at any time, you will lose your X status forever.
Strength X Node
- 1.600.000 VET needed
- 30 day maturity period when upgrading from a VeThor X Node
- If your wallet drops below 1.600.000 VET at any time, you will lose your X status forever.
VeThor X Node
- 600.000 VET needed
- No maturity period
- If your wallet drops below 600.000 VET at any time, you will lose your X status forever.
Important notes about x nodes:
- You can’t downgrade from one X Node to the other, you will lose X status. You can however upgrade.
- As an X node holder, you will get additional benefits such as VeChain Ico’s whitelist access.
- The only way to become an X Node holder is to have at least 600.000 Ven on a traceable wallet (not an exchange!) before March 20th, 2018.
There currently are four various ways to earn Thor Power with your VeChain. These four ways (called reward types) depend on various parameters that determine how much Thor Power your VeChain will generate. This is called the Thor Power generation rate.
Reward type 1
Requirements: Own VeChain, it does not matter how much you have. No need to stake them into a node.
Thor Power generation rate: Currently set to 0.000432 thor generated per 1 vet held per day. This number might increase in the future, but not decrease.
- Some exchanges (like Binance) do pay out VeThor if you hold VeChain in your exchange wallet. VeChain has however confirmed that they will help out exchanges in making this happen.
Reward type 2
Requirements: An authority node
Thor Power generation rate: 30% of all Thor Power consumed by blockchain transactions will be rewarded to the 101 owners of a Thrudheim Masternode.
- The other 70% of Thor Power consumed will be burned.
Reward type 3
Requirements: An authority node or economic node (excluding the smallest VeThor X node)
Thor Power generation rate: The VeChain foundation has set up a special pool called the Foundation Reward Pool that has 150 billion VET in it. The Thor Power generated by this pool will be divided amongst those eligible for reward type 3.
- The foundation pool will decrease by 25 billion VET every 6 months, until further notice.
Reward type 4
Requirements: An authority node or X economic node.
Thor Power generation rate: The VeChain foundation has set up a special pool called the Foundation X Reward Pool that has 50 million VET in it. The Thor Power generated by this pool will be divided amongst those eligible for reward type 4.
- The foundation x pool will remain at 50 billion VET, until further notice.
Do you have any questions? Feel free to ask them in the comments below!