If you remember VeChain from its early success in B2B and supply chain, its latest push into B2C through the VeBetter platform shows how far it has evolved. VeBetter now boasts million-user applications and drives everyday sustainable actions on-chain. And with the ongoing Renaissance upgrades, the VeChain ecosystem is inching closer to fully implementing an extensive framework that efficiently connects major brands and organizations with web3 innovations. In this review, you will learn what makes VeChain unique, how its 2025 “Renaissance” upgrades are attracting new audiences (retail, institutional, and builders), and how its focus on sustainability and compliance sets it apart in the crypto space.
KEY TAKEAWAYS
➤ VeChain is a blockchain platform used for supply chain tracking, sustainability tools, and consumer-focused applications.
➤ The network is transitioning from proof-of-authority to weighted delegated proof-of-stake through its Renaissance roadmap.
➤ Renaissance updates introduce NFT staking, dynamic fee markets, and new governance models to expand participation.
➤ Future roadmap includes the Hayabusa upgrade in late 2025 and interoperability advances under the Intergalactic phase.
VeChain’s early journey: From supply chains to enterprise-grade blockchain
VeChain began its journey in 2015 with a clear focus on building blockchain tools that could improve supply chain transparency.
Co-founded by Sunny Lu, the project first launched in 2016 as a private blockchain backed by BitSE, a Blockchain-as-a-Service firm in China. Its initial applications revolved around anti-counterfeiting, using tools like NFC chips, RFID tags, and QR codes to track and verify product authenticity.
The project attracted early funding from Fenbushi Capital, one of China’s first blockchain-focused VCs. Fenbushi helped it scale beyond its pilot phase.
Then, in 2017, VeChain raised around $20 million through a public ICO, selling its original ERC-20 VEN token. That capital allowed it to build VeChainThor, its own layer-1 blockchain, which officially launched in 2018.
Strategic partners and a shift toward sustainability
The VeChain ecosystem got another boost in 2018 as European assurance giant DNV invested in the platform and began integrating its tech into business services.
Instead of seeking multiple VC rounds, VeChain focused on long-term corporate deals and tapped its ICO reserves. Then, in 2023, it formed another major partnership with Boston Consulting Group to expand its utility into sustainability use cases and real-world decentralized applications.
What began as a B2B blockchain for logistics and compliance has since evolved into something broader. Through the launch of VeBetter — a web3 app store — the Foundation is now targeting real-world consumer adoption.
The goal is to offer blockchain tools that support personal and planetary well-being, such as EV charging rewards, sustainable food tracking, and fitness incentives aligned with the UN’s Sustainable Development Goals.
Technology: Blockchain architecture and consensus
The VeChainThor network currently runs on a Proof-of-Authority (PoA) consensus system.
Instead of relying on thousands of anonymous miners or stakers, VeChain uses a pool of 101 known and KYC-verified validators, called Authority Masternodes (AMs).
Each validator must hold 25 million VET as collateral, which not only secures the network economically but also reflects the regulated industries VeChain originally targeted.
Enterprises preferred this setup because they could trust that validators were accountable entities, not faceless actors. The result has been fast and predictable performance: blocks are confirmed every ten seconds, with deterministic finality achieved after 180 blocks.
Fees remain consistently low, often under a cent per transaction, which makes large-scale enterprise adoption realistic.
Transition to weighted Delegated Proof-of-Stake
The PoA model provided stability, but it also limited decentralization. To address this, VeChain is transitioning to a Weighted Delegated Proof-of-Stake (WDPoS) model under its Renaissance roadmap.
In this new system, any VET holder can stake tokens and mint a Delegator NFT that acts as proof of collateral. These NFTs can then be delegated to validators, allowing everyday participants to help secure the network and earn rewards.
Validators must still maintain a minimum of 25 million VET, but under WDPoS their pool (their own stake plus delegators’ stake) can reach 600 million VET.
The larger the combined stake, the greater the validator’s probability of producing blocks. This hybrid model preserves VeChain’s fast finality while broadening governance and participation.
Node types and StarGate migration
In addition to Authority Masternodes, VeChain historically used Economic Nodes and X-Nodes. Economic Nodes rewarded users for holding VET, while X-Nodes were early supporter tiers that granted ecosystem privileges. Both node types have migrated into the validator/delegator model through StarGate staking.
This shift unifies governance and staking, making participation more accessible and streamlined.
Developer resources and smart contracts
VeChainThor is EVM-compatible and enables developers to deploy Solidity-based smart contracts and use common Ethereum tools like Remix, Truffle, and Hardhat with minimal changes. On top of this, VeChain offers unique built-in features:
- Extension contracts like Authority.sol and Energy.sol support validator management and gas operations.
- Multi-Party Payment (MPP) lets businesses or apps cover gas fees for users.
- Multi-Task Transactions (MTT) allow multiple actions in a single transaction.
- Connex API, VeChain SDK, and VeChainKit simplify integration for web and mobile apps.
- VORJ, a no-code tool, enables token and contract deployment without programming expertise.
These resources make it easier for developers to build applications that abstract away blockchain complexity for end users.
Security, scalability, and reliability
VeChainThor has maintained 100% uptime since launch, with fees stable at less than a cent.
Security under PoA relied on validator identity verification and collateral, but with WDPoS, this will shift toward economic incentives via staking NFTs.
The StarGate staking platform also boosts rewards compared to the passive model, and encourages active participation. Tiered NFTs gamify the system, with higher multipliers for larger stakes, increasing both engagement and security.
Tokenomics
VeChain splits value and gas. VET carries utility and governance with a fixed supply near 86.7B. VTHO pays for transactions and smart-contract execution. The split keeps usage costs stable for you while VET holds network value.
What Galactica changed (live now)
Galactica hit mainnet on July 1, 2025. The upgrade added a dynamic fee market (VIP-251) with 100% base-fee burn, typed transactions (VIP-252), Shanghai EVM alignment (VIP-242), and Extension Contracts v3 (VIP-250).
You now see a base fee that adjusts with demand and burns in full; the priority fee sits outside that base and routes to the block proposer.
What still applies until Hayabusa goes live
The legacy VTHO issuance rule still sets the reference point today: 0.000432 VTHO per VET per day from simple VET balances. This sits in the docs and frames the size of the shift ahead.
The Hayabusa switch: Stake-only VTHO and deflation pressure
Hayabusa targets December 2025 for mainnet. After activation, new VTHO flows only to staked VET via validators and delegators.
The Foundation also models a ~72.2% cut to initial VTHO inflation at launch, with issuance tied to total staked VET. Following community approval, Hayabusa’s eventual merge with mainnet is in motion, with these changes to tokenomics due to be enacted by the end of 2025.
Rewards, weights, and validator caps
Block rewards are split 30% to validators and 70% to delegators, with weight multipliers that favor validator self-stake and legacy X-Node collateral.
Each validator still needs 25M VET minimum, while each validator pool (self-stake plus delegated stake) tops out at 600M VET to limit concentration. Your stake sits inside an NFT that proves collateral and carries governance weight.
StarGate: the on-ramp before Hayabusa
StarGate went live on Jul. 1, 2025, as the app-layer on-ramp for staking on the protocol. You stake VET, mint a staking NFT, and (once Hayabusa is live) delegate it to a Validator, earning portions of the block rewards they ‘mine’.
The Foundation funded an Early Bird pool of 5.48B VTHO (~$15M) for six months to jump-start participation and migration for Economic/X-Nodes. Protocol-level delegation lands with Hayabusa; StarGate handles the bootstrapping now.
Supply picture and fees after Galactica
VET supply stays fixed near 86.7B. VTHO has elastic supply: issuance (legacy today, stake-linked after Hayabusa) minus burn. With VIP-251 on mainnet, every transaction burns 100% of the base-fee portion, with priority fees paid to the block proposer. Higher on-chain use now removes more VTHO by design.
Costs, UX, and tooling
You get typed transactions, dynamic fees, and Shanghai-level EVM features, which align VeChainThor with mainstream EVM tools and improve gas math clarity. That set creates fewer surprises for you and is easier to port for dev teams.
APY expectations (scenarios, not promises)
The team and community show scenario math and calculators for yields under the new design. Examples point to mid-single-digit to double-digit APY ranges at lower aggregate stake, then lower yields as total stake climbs. Final yields depend on stake distribution, fees, priority tips, and on-chain activity.
Where VeBetter.com fits the flywheel
VeBetter.com apps record frequent on-chain actions. Under VIP-251, those actions burn VTHO through base fees. Under Hayabusa, higher activity also expands rewards to active stakers, while idle balances stop minting new VTHO. That loop ties real usage to VTHO scarcity and staking income in a way the old model could not match.
Governance
VeChain runs on a structured on-chain governance model that keeps upgrades transparent and gives stakeholders a direct role in network changes. Proposals come through VeChain Improvement Proposals (VIPs) and move through three stages before they go live.
Current process:
- Decision-making: Authority Masternodes (AMs) and Economic/X-Nodes vote on proposals, either on-chain or off-chain in the governing body.
- Authorization: A community-elected Steering Committee submits proposals that gain approval. A majority vote is needed for final authorization.
- Execution: Once authorized, any participant can trigger the on-chain action described in the proposal.
The Steering Committee now acts as the highest layer of governance. It has authority over major updates: validator management, protocol changes, gas parameters, and reward models.
This semi-centralized design was originally meant to reassure enterprise users by providing a safety backstop, while still letting the community participate through voting.
Under the Renaissance roadmap, that balance shifts. The Steering Committee will be removed, and decision-making will flow directly through VeVote, the upgraded governance platform.
Governance rights will tie directly to Delegator NFTs — the same NFTs you mint when you stake VET. That means your economic weight in the system also defines your governance influence, aligning security, rewards, and decision-making under one model.
VeChain ecosystem overview
VeChain’s ecosystem sits on the application layer, where tools are built to serve real-world use cases. The flagship effort is VeBetter, a web3 platform that rewards sustainable choices — whether you exercise, shop for healthy food, drive an EV, or cut down on waste.
It’s designed for easy onboarding, so you can start earning rewards with minimal friction, even if you have never used crypto before.
VeBetter
VeBetter turns your everyday sustainable actions into tokenized events on-chain. For instance, if you drive an EV, the total reduction in emissions can be logged and valued – rewarded directly to you, removing middlemen and giving new value to your data and activities.
The platform is governed by a DAO. Each week, new tokens get distributed among apps, users, and the Treasury. The Treasury then funds back grants, proposals, and ecosystem growth based on community proposals and voting.
Two apps — Mugshot (cutting single-use coffee cups) and GreenCart (rewarding healthy, sustainable diets) — already passed one million users in Q2 2025. This demonstrates that the incentive model drives real adoption.
Governance in VeBetter ties back into the same staking model that secures VeChainThor. You earn B3TR, the incentive token, for sustainable behavior. VOT3, the governance token, gives weight in platform-level votes.
Both tie into VeVote and Delegator NFTs, meaning your economic and behavioral activity flows into direct decision-making power.
Notable VeBetter apps
- GreenCart: Rewards grocery choices like fresh or organic produce.
- Mugshot: Tracks reusable mug use, rewarding B3TR instead of waste.
- Cleanify: Organizes and verifies cleanup events, logging collected waste on-chain.
- Green Commuter: Tracks carbon savings from walking, cycling, or running.
- EVearn: Rewards Tesla drivers and chargers through direct API links, with more EV brands on the way.
- Build Your Body (BYB): Co-branded with UFC, this “workout-to-earn” app launched at UFC 317, reaching millions.
VeWorld
VeWorld is the ecosystem’s all-in-one wallet and entry point. It replaces the original VeChainThor wallet and now serves as VeChain’s “super-app.”
You can use it to manage assets, stake VET, mint Delegator NFTs, and access VeBetter apps. It supports social logins (via Privy), integrates with Ledger hardware wallets, and has been downloaded more than 4.22 million times to date.
Governance and infrastructure tools
- VeVote: The upgraded on-chain voting platform where proposals and VIPs are decided. Ties directly into Delegator NFTs.
- GM NFT Program: Free-to-mint Earth-tier NFTs that can be upgraded with B3TR. Higher tiers (Earth → Galaxy) unlock more governance weight.
- VePassport: A decentralized identity layer that filters bots and confirms real users based on wallet activity and GM NFT holdings.
Enterprise and sustainability tools
- VeCarbon: A toolkit for enterprises to log, certify, and share emissions data on-chain. Built to align with carbon accounting standards and compliance frameworks.
- ToolChain: VeChain’s enterprise-grade BaaS solution. Many corporate apps and dApps run on it.
Partnerships and outreach
- UFC (2022–present): Multi-year sponsorship with recurring brand visibility. Integrated NFC and blockchain tech into fighter gloves; UFC now also supports VeBetter apps.
- Nitto ATP Finals (2022–present): Multi-year deal with ATP, embedding blockchain into the finals trophies and fan events.
- Power Slap (2025): Title partnership adding sports/media exposure alongside UFC figures.
- GreenCart & Retail Institute Italy (2025): Expands VeChain into retail sustainability.
- Dana White Advisory Role (2025): UFC President joins as advisor, bringing prestige and signaling entertainment crossover.
- 4Ocean Partnership (2025): Joint project to remove 300,000 pounds of plastic waste, logged and verified on-chain via VeBetter.
VeChain roadmap
Q3 2025: Hayabusa testnet and governance
Here’s what’s coming next. In early September 2025, the Hayabusa testnet will open, following the governance vote that kicked off on August 18. This is where you will see big changes tested: new tokenomics, an updated VTHO consumption and distribution model, and tweaks to the consensus mechanism. Your vote, along with the wider community, will decide whether Hayabusa makes it to mainnet.
Q4 2025: Hayabusa mainnet launch (planned)
If the testnet phase runs smoothly and governance approves, you can expect the Hayabusa upgrade to go live on mainnet in late December 2025. This upgrade will reshape incentives.
A new VTHO issuance curve will roll out, and active participation in staking, governance, and development will carry more rewards. Validator and Delegator roles will also go live, giving you more ways to take part in the network.
Post-Q4 2025: Intergalactic phase (future)
Looking beyond Hayabusa, the Intergalactic phase will focus on interoperability. You will see full JSON RPC integration, which means outside applications and developers can interact with VeChainThor more easily.
This step aims to make the chain more open, scalable, and developer-friendly, giving you a smoother experience if you are building or connecting tools.
How far has VeChain come (and where is it headed next?)
All aspects considered, VeChain’s 2025 ecosystem feels less about hype and more about utility. The Renaissance upgrades bring in NFT staking, refreshed token mechanics, and a more open governance model. Meanwhile, enterprise partnerships still anchor the project, but tools like VeBetter.com and cross-chain access are starting to push it beyond that. No doubt, broader adoption remains a key challenge, but the platform’s upgraded infrastructure and regulatory clarity seem to have made further expansion more feasible.
Frequently asked questions
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