Deep Dive
1. Interstellar Hard Fork (16 September 2026)
Overview: This mandatory mainnet upgrade makes VeChainThor fully compatible with the latest Ethereum standards. For users, it means a smoother experience and access to more advanced applications without any action required on their part.
The upgrade, enacted via VIP-255, integrates 11 Ethereum Improvement Proposals (EIPs). Key technical additions include transient storage for cheaper smart contract operations and native support for advanced cryptographic curves like BLS12-381 and secp256r1. The latter enables secure logins using device passkeys or biometrics. It raises the network's gas and block size limits to match modern EVM chains.
What this means: This is bullish for VTHO because it makes the VeChainThor blockchain much more attractive to developers. Easier porting of Ethereum applications could lead to a surge in new projects and, consequently, higher demand for VTHO gas. The upgrade itself does not change tokenomics but aims to drive long-term network usage.
(NullTX)
2. Hayabusa Tokenomics Overhaul (December 2025)
Overview: This upgrade radically changed how VTHO enters and exits circulation. It rewards active network participants instead of passive holders, aiming to create a healthier, usage-driven economy.
Technically, Hayabusa ended the passive generation of VTHO for all VET holders. Now, VTHO is only generated by VET that is actively staked and delegated through the StarGate platform. Concurrently, it mandated that 100% of the base fee for every transaction is permanently burned (destroyed). VeChain stated this reduced the rate of new VTHO entering circulation by roughly 50%.
What this means: This is structurally bullish for VTHO because it directly links the token's supply to network usage. Higher transaction activity leads to more VTHO being burned, creating sustained deflationary pressure. The success of this model depends on real adoption and transaction growth.
(Gate.io)
3. Galactica Fee Market Upgrade (July 2025)
Overview: This update modernized VeChainThor's transaction fee system to be more efficient and predictable, similar to Ethereum's improvement. It helps prevent network congestion and manage transaction priority.
The upgrade implemented an EIP-1559-style dynamic fee market. Each transaction now has a base fee that is algorithmically adjusted based on network demand, and this entire base fee is burned. Users can add a priority tip (paid to validators) to get faster transaction inclusion.
What this means: This is neutral-to-bullish for VTHO as it improves the network's core functionality and user experience. The burning of base fees adds a constant, usage-based deflationary mechanism to VTHO's tokenomics, which could support its value as adoption grows.
(Bullish)
Conclusion
VeChainThor's codebase has evolved through three major upgrades focused on Ethereum compatibility, deflationary tokenomics, and efficient fee markets. The trajectory is clear: making the network more developer-friendly and directly tying VTHO's value to organic usage. Will rising staking and burning metrics validate this new economic model in the coming quarters?