What is VeThor Token (VTHO)?

Deep Dive

1. Core Utility as Gas

VTHO acts as the “fuel” for the VeChainThor blockchain, paying for transaction fees and smart contract operations. This separation from VET (the governance token) allows enterprises to budget transaction costs predictably, even during market swings. VTHO is burned after use, creating deflationary pressure (VeChain Foundation).

2. Dual-Token Mechanics

VeChain uses a two-token model:
- VET: Holds governance rights and generates VTHO passively.
- VTHO: Spent for network activity, with its generation rate adjusted to balance supply and demand.
This design minimizes fee volatility for enterprise clients, a key focus for VeChain’s supply chain and IoT use cases.

3. Post-Hayabusa Tokenomics

The December 2025 Hayabusa upgrade overhauled VTHO’s economics:
- Staking-Only Generation: VTHO is now minted only by staking VET, replacing passive holding rewards.
- Dynamic Inflation Controls: Supply adjusts based on staking levels and transaction burns, reducing long-term inflation risks.
- Validator Rewards: Users delegate staked VET to validators, earning VTHO proportional to network usage (VeChain announcement).

Conclusion

VTHO is the operational backbone of VeChainThor, balancing enterprise usability with incentivized decentralization. Its evolving tokenomics aim to align supply with real-world demand while rewarding active participants. How will VeChain’s focus on regulated, enterprise-grade solutions shape VTHO’s adoption in 2026?