VeThor

Understanding VeThor (VTHO): The Energy Token of the VeChainThor Ecosystem

What is VeThor (VTHO)?

VeThor Token (VTHO) is the secondary token in the VeChainThor blockchain ecosystem, functioning as the energy or "gas" token. While VeChain (VET) serves as the primary value-transfer token in the ecosystem, VTHO plays a crucial complementary role by powering transactions and smart contract executions on the network. Created by the VeChain Foundation, VTHO was designed to separate the costs of using blockchain services from speculation on the platform's value, providing a more stable operating environment for enterprises and developers.

How Does VeThor (VTHO) Work?

The VeChainThor blockchain operates on a dual-token system where VET generates VTHO automatically, and VTHO is consumed when performing transactions. This design creates a self-sustaining ecosystem:

• VTHO is generated by holding VET tokens at a constant rate
• Every transaction on the VeChainThor blockchain requires a certain amount of VTHO as payment for execution
• The cost of transactions remains relatively stable through governance mechanisms
• 70% of VTHO used in transactions is destroyed, while 30% goes to Authority Nodes as rewards

This mechanism ensures that network usage costs can remain predictable even as the value of VET may fluctuate, making the blockchain more appealing for business applications.

VTHO Staking and Generation

Unlike traditional cryptocurrencies, VTHO doesn't offer direct staking or mining. Instead, VTHO is generated by simply holding VET in a compatible wallet. This process is sometimes referred to as "generation" rather than staking:

• Each VET generates 0.000432 VTHO per day (approximately 1.37 VTHO per 10,000 VET daily)
• No special staking process is required—VTHO automatically accumulates as long as you hold VET
• The VTHO generation rate can be adjusted through governance votes if needed

This passive generation model means VET holders continuously receive VTHO without needing to lock up their tokens or run mining hardware, creating a low-barrier entry point for participating in the ecosystem.

What is VTHO Used For?

VTHO serves several important functions within the VeChainThor ecosystem:

• Transaction fees: All activities on the VeChainThor blockchain require VTHO to process
• Smart contract execution: Deploying and interacting with dApps consumes VTHO
• Data writing: Enterprises use VTHO to write supply chain and product information to the blockchain
• Fee stability: By separating network usage costs (VTHO) from the speculative value token (VET), businesses can better predict operational costs

This utility-focused design makes VTHO essential for the functioning of applications built on VeChainThor, particularly those focused on supply chain traceability, carbon credits, and other enterprise use cases.

VTHO Distribution and Launch

Unlike many cryptocurrencies that launched through ICOs or token sales, VTHO was not directly sold to the public. Instead:

• VTHO began generating automatically when the VeChainThor mainnet launched in June 2018
• VET holders started receiving VTHO at a fixed generation rate immediately after the mainnet launch
• There was no pre-mine or initial distribution of VTHO itself
• The initial supply was essentially zero, with all tokens generated through the holding of VET

This distribution model ensured that VTHO entered circulation organically based on actual VET holdings across the network.

Additional Information About VeThor (VTHO)

Several other aspects of VTHO make it unique in the cryptocurrency landscape:

• Governance: The VeChain Foundation can adjust VTHO generation rates and transaction costs through governance
• Enterprise focus: VTHO is designed specifically with corporate needs in mind, prioritizing cost predictability
• Economic model: The dual-token system creates a self-balancing economy that can scale with adoption
• Authority nodes: The VeChainThor network is secured by 101 Authority Nodes that receive 30% of VTHO transaction fees

You can trade VeThor (VTHO) easily on various cryptocurrency exchanges using Cryptohopper's automated trading bot. This allows investors to implement sophisticated trading strategies without needing to monitor the market 24/7, taking advantage of VTHO price movements and its relationship with VET.

As enterprise adoption of the VeChainThor blockchain continues to grow, the utility and demand for VTHO may increase proportionally, making it an interesting token to watch in the blockchain-for-business sector.