VeChain (VET) has implemented a unique solution to tackle a long-standing issue in the blockchain industry. The problem of fluctuating transaction costs has plagued the blockchain ecosystem for years. Public blockchains rely on an economic system to govern the behavior and distribution of tokens within the network. In order to address this challenge, VeChain (VET) has introduced a Dual Token System consisting of VET (VeChain Token) and VTHO (VeThor Token). VET serves as a value-transfer medium, while VTHO represents the cost of using the VechainThor blockchain resources.
The introduction of this dual-token model ensures stable transaction costs, even in volatile markets. VET stores value while VTHO fuels transactions, keeping costs predictable. This is particularly beneficial for those who prioritize reliability. To learn more about this innovative system, visit the following link: [insert shortened link].
In a 2019 article discussing this topic, VET’s role was primarily limited to generating a secondary token (VTHO) and storing/transferring value. However, VTHO now serves as the energy or gas token of the blockchain. Enterprises and developers utilizing the blockchain are required to use VTHO for uploading data and creating smart contracts.
The objective of implementing the dual-token model is to shield transaction fees from the effects of price volatility. During market bull runs, token prices inflate, resulting in increased transaction costs. By decoupling transaction fees from the native token, VeChain ensures that users can predict the future costs of utilizing the network. VTHO assists in providing this predictability.
VeChain (VET) now boasts four core flagship features: Meta-transaction features, Proof-of-Authority (PoA) consensus 2.0, an On-chain governance mechanism, and the Unique Two-Token System. Additionally, VeChain has introduced ToolChain, a platform built on the VeChainThor blockchain that offers solutions ranging from product lifecycle management to carbon credit solutions and environmental sustainability reporting. ToolChain is currently available as platform-as-a-service (PaaS), software-as-a-service (SaaS), and blockchain-as-a-service (BaaS).
Industry analysts have expressed bullish sentiments towards VET, with predictions of a potential price reversal to $0.5. Experts believe that the asset is bouncing off a strong support level, known as the Accumulation Zone Area, and could experience a surge of 400-500% in the coming weeks.
At present, VET is trading at $0.034, experiencing a slight decline of 2% in the last 24 hours, 17% in the last 30 days, 23% in the last 90 days, and 6% year-to-date.
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