The dual-token system is the cornerstone of the VeChainThor economy, allowing the separation of the cost of using the network from the speculative value of its main token, which is crucial for corporate clients.

1. VET (VeChain Token):

  • Main Function: VET is a token for transferring value within the ecosystem. It can be seen as "smart money" or an "asset" of the network.

  • Staking and Generation of VTHO: The most important property of VET is that its holders automatically generate VTHO over time. The more VET you hold, the more VTHO you generate.

  • Governance: VET holders can participate in the governance of the blockchain through a node system. To become a node (Authority Masternode or Economic Node), you need to hold a certain amount of VET. These nodes have voting rights on key platform development issues.

  • Price Stability: Because VET is used to generate VTHO, its price can rise without affecting the stability of transaction costs.

2. VTHO (VeChainThor Energy):

  • Main Function: VTHO (VeChainThor Energy) is the "gas" token of the network. It is used to pay for all operations on the VeChainThor blockchain, including:

    • Sending transactions.

    • Executing smart contracts.

    • Recording data on the blockchain.

  • Predictable Expenses: Companies using VeChain can forecast their transaction costs since the cost of each operation in VTHO is relatively stable. If the price of VTHO rises significantly, the VeChain Foundation can adjust the amount of VTHO required for a transaction to maintain predictable expenses.

  • Receiving and Using:

    • Any holder of VET automatically generates VTHO.

    • VTHO can also be purchased on cryptocurrency exchanges.

  • Separation from VET: This model allows VET to be a tool for investment and management, while VTHO remains a utility token intended solely for network functionality.

How It Works in Practice:

Imagine a large company like Walmart using VeChain. Instead of buying VTHO for each transaction, it can simply purchase a large volume of VET. This VET will generate enough VTHO to cover all transactions in their supply chain, ensuring predictable and stable operational costs regardless of fluctuations in the price of VET.

This dual-token system is one of VeChain's main innovations that has made it attractive to the corporate sector. #VET #Binance $VET

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