VeThorPrice

(VTHO)

VeChain (VET) serves as the primary value-transfer and governance token for the VeChainThor blockchain, representing ownership and the capacity to generate VTHO—akin to a "cow" producing "milk." VeThor (VTHO) is the operational "energy" or "gas" token. It is essential for conducting any activity on the network, such as executing smart contracts, uploading data, or processing transactions. VTHO is consumed (burned) with each network operation, making it the indispensable fuel for the blockchain's functionality.

Historically, VTHO was generated passively by simply holding VET in a compatible wallet. However, with the upcoming "Renaissance" upgrade, specifically the Hayabusa phase (anticipated late 2024/2025), the generation model is shifting. To continue receiving VTHO, users will need to actively stake their VET through the dedicated StarGate platform. This update means that VET held idly in non-staking wallets or on some exchanges may no longer automatically generate VTHO, requiring active participation to earn rewards.

VET and VTHO serve distinct yet complementary roles within the VeChain ecosystem. VET is often regarded as a long-term stake in the network's fundamental growth and overall adoption, with its value tied to the increasing utility and scarcity of the blockchain. VTHO, conversely, is directly linked to the immediate operational demand of the network; its usage fluctuates based on transaction volume and smart contract executions. The VeChain Foundation employs governance mechanisms to adjust network parameters, such as transaction costs or generation rates, aiming to maintain a stable and predictable environment for enterprise users.

The VTHO "burn" mechanism involves the destruction of VTHO whenever it is used to pay for transaction fees or smart contract executions on the VeChainThor blockchain. This process is crucial for managing the token's supply and counteracting inflation, as VTHO is continuously generated. Following the Galactica Upgrade (July 2025), 100% of the base transaction fee is now burned. This mechanism is significant because if the daily consumption (burn) of VTHO exceeds its daily generation, it introduces a deflationary aspect, which fundamentally impacts the token's supply-demand dynamics.

The VeChain Foundation aims to maintain predictable and stable transaction costs for businesses leveraging the blockchain. Enterprises, such as those involved in supply chain management or sustainability initiatives, require consistent operational expenses for their activities. Should the cost of VTHO—the network's gas token—become excessively high, routine blockchain transactions could become financially prohibitive, potentially hindering enterprise adoption and scalability. To address this, VET holders, through governance voting via the VeVote platform, can adjust network parameters, such as decreasing the amount of VTHO required for each transaction, thereby ensuring stable real-world costs for businesses regardless of VTHO's fluctuating value.

VTHO can be acquired on various major cryptocurrency platforms that support its trading. For secure storage and comprehensive interaction with the VeChain ecosystem, the official digital wallet is VeWorld. This wallet application has replaced the older VeChainThor mobile wallet and serves as a central hub for users. VeWorld allows you to stake your VET to generate VTHO, provides a clear overview of your VTHO generation, and facilitates engagement with decentralized applications (dApps) within the ecosystem, including participation in initiatives like the VeBetter sustainability program.