- VeChain will move VTHO issuance to a volatility model tied to staked VET participation.
- The new settings improve fairness, strengthen decentralization, and link rewards to actual network usage.
VeChain is preparing for a large-scale transition in December 2025, as the second phase of Hayabusa will replace the long-standing fixed VTHO output with a model formed by network-wide VET staking levels. This change fixes the annual supply from a single preset number to several possible outcomes, depending on the number of tokens locked by participants.
In the previous setup, the chain produced a stable 5 × 10⁻⁹ VTHO per VET per second. The daily production per VET amounted to approximately 0.000432 VTHO, while the annual network production remained close to 13.7 billion VTHO. The new framework will move away from single-digit numbers and move annual output into a range linked to participation.
According to project data, the investment of 2.525 billion VET, which is about 2.6% of the total supply, will generate about 3.86 billion VTHO annually. In the second scenario, approximately 19 billion VTHO will be produced annually with a contribution of 60 billion VET, representing approximately 75% of the supply. Both cases demonstrate how participation in networks shapes new supply channels.
Hayabusa upgrade changes VeChain token usage
This update ensures that VTHO is only sent to VET that is actually staked, ensuring that rewards go to those contributing rather than tokens sitting idle. This design puts more emphasis on validator support, encourages a stable delegation, and helps candidates gather more financial support. This increases the stability of the entire network.
Another objective is to align participant rewards with network activity, creating a direct link between staking commitments and VTHO flows. This method directly ties the acquired value to the contribution and strengthens the user’s interest in the system without the need for additional mechanisms.
CNF previously reported that the Hayabusa upgrade is a major update for the VeChain network that moves the system from the old PoA model to the DPoS model while adding new token functionality. This upgrade marks the second phase of the Hayabusa program and follows consensus changes already completed on the testnet.
Migration schedule for 2025 upgrade
Testnet completed the switch from PoA to DPoS on November 11, 2025. Mainnet activation will begin on December 2, 2025, with a planned transition period from December 2 to 9. During this first 7-day reward phase, VTHO generation will completely stop while the chain adapts to the new structure.
Full dynamic publishing will begin immediately after the transition period ends. Once a model is enabled, it runs without a fixed schedule. Each year, the supply is determined by how much VET is locked in staking at that time. This can range from a few billion VTHO to almost 20 billion if there are many participants.
The upgrade sets up a system where annual issuance depends on the number of active participants on the network rather than a fixed number, and the focus shifts to the December date when the new rules come into effect.
Meanwhile, Vechain (VET) tokens are traded at: $0.01579is shown. 0.31% Drop into the past.
