- Quorum for Hayabusa vote hit in five hours, shifting VeChain to Delegated Proof of Stake.
- New model links VTHO rewards to VET staking, aiming at lower inflation and stronger stability.
VeChain announced that quorum for the Hayabusa vote was secured within just five hours of its launch on August 18. The swift response from the VET community marked the beginning of a major shift in the network’s governance and reward system.
As CNF has reported, the upcoming upgrade will replace the existing Proof of Authority with Delegated Proof of Stake. While the current model uses a small group of authority nodes, the new framework introduces validators and delegators, placing voting and security into a larger group of participants.
Validators will now be rewarded at a 2x multiplier, while X-Node Delegators and Economic Node Delegators will earn 1.5x and 1x rates, respectively. This reward system aims at encouraging greater participation and discouraging greater issuance of tokens across the network.
VeFam – you SMASHED it!
Quorum on the Hayabusa vote was reached in just 5 hours 😎
The first steps to new tokenomics and an updated consensus model have been taken. 🚀
Meanwhile, please continue to support the vote and let’s crush the engagement! $VET
— VeChain (@vechainofficial) August 18, 2025
Reduced VTHO Inflation Through Dynamic Rewards
One of Hayabusa’s core updates is VTHO generation. Previously, all VET holders passively received VTHO, but the new configuration limits rewards only to those who stake or delegate their tokens. This change aims at directly linking rewards to active participation in securing the chain.
The revised model reduces VTHO creation, minimizing inflationary pressure and supporting VeChain’s overall economic mechanics. It is a step towards sustainability by linking output with participation rather than automated distribution. VeChain stressed,
Replaces static VTHO generation with dynamic block rewards exclusively for VET stakers who secure the network, reducing $VTHO inflation, and accelerating VeChain’s deflationary mechanics.
The Hayabusa testnet will be rolled out in early September, and full integration into the mainnet is aimed at the end of December 2025, establishing a clear timeline towards adoption of the new model.
The VeChain team said,
The first steps to new tokenomics and an updated consensus model have been taken.
This reflects the push to strengthen both decentralization and token stability with the backing of VET holders.
Altcoin Rally Hints at Possible VET Upside
In a separate development, CNF reported that Crypto.com has collaborated with VeChain Foundation to include custody service offerings for VET and VTHO. This presents regulated protection for business ventures and high-net-worth investors, with integrated governance, insurance, and multi-user access facilitations.
Sunny Lu, VeChain’s chief executive, noted the partnership is a step towards mainstream adoption. Institutions may now employ custody infrastructure compliant with established security standards in order to manage holdings on the VeChainThor chain.
At the moment, VET is trading at $0.02345, representing a 0.55% decrease in the last 24 hours. Swallow Academy noted in an X post that a future altcoin rally would even propel VET when momentum gains pace.
Technical observers are viewing the 200-day exponential moving average at $0.267 as the next significant hurdle. If the buyers are able to push the price above this level, predictions point toward targets between $0.03 and $0.075, hinting at a strong growth potential on the horizon.
