Question 1

What roles do VET and VTHO serve respectively?

Accepted Answer

VET is the native token of VeChainThor, used for value transfer, ecosystem service access, and network governance participation; VTHO is a separate asset for transaction and smart-contract execution fees. The dual-token model separates the value asset from computational fees.

Question 2

What are VET's smallest unit of measurement and precision?

Accepted Answer

VET is the natively issued token of the VeChainThor chain and has 18 decimal places of precision. 1 VET equals 10^18 wei, making very small transfers and precise measurement possible.

Question 3

Will VET's total supply continue to increase?

Accepted Answer

VET has a fixed total supply of 86,712,634,466 tokens, and official documentation states that no new VET will be created. Fixed supply describes the issuance cap; it does not directly indicate circulating supply, holder distribution, or price at any given point in time.

Question 4

Why does holding VET not mean directly paying Gas in VET?

Accepted Answer

On VeChainThor, transfers and smart-contract execution consume VTHO. Therefore, holding VET does not mean directly paying Gas in VET for every transaction: users' actual transaction costs are denominated in the required VTHO.

Question 5

How are VeChainThor transaction fees calculated?

Accepted Answer

A transaction's VTHO cost is determined jointly by the required Gas and the Gas price: E_con = p × G. Here, G is the Gas required to process the transaction, and p is the VTHO Gas price determined by the fee market; more complex operations generally consume more Gas.

Question 6

How are transaction fees allocated between burning and validators after payment?

Accepted Answer

VTHO fees consist of a base fee and a priority fee. The base fee is burned, while the priority fee is paid to the validator that proposes the block; therefore, not all fees paid by users become validator revenue.

Question 7

Why is VTHO's supply different from VET's?

Accepted Answer

VTHO does not have a fixed maximum supply like VET. Its supply is affected by a dynamic fee mechanism: transaction base fees are burned, while new VTHO is generated per block, and supply changes are jointly affected by usage consumption.

Question 8

How is new VTHO generated after Hayabusa?

Accepted Answer

Since the Hayabusa hard fork, new VTHO is generated per block and depends on the total amount of VET locked across the network, rather than being generated automatically simply by holding VET. This change links VTHO generation to locking activity that actively participates in network security.

Question 9

What relationship does the VTHO generation formula express?

Accepted Answer

The official annualized network-generation relationship is VTHO_gen = 1200 × 64 × √VET_staked, where VET_staked is the total VET locked by validators and delegators across the network when blocks are produced. The square root means generation increases as the total locked amount rises, but at a diminishing rate.

Question 10

How can users participate in the VTHO rewards mechanism?

Accepted Answer

Participants can purchase a StarGate NFT and delegate it to a validator to become a delegator, or operate a validator node themselves. Official documentation states that the validator route requires running node infrastructure and locking 25 million VET; the two routes involve different forms of participation.

Question 11

What is the key difference between VTHO generation rules before and after Hayabusa?

Accepted Answer

Before Hayabusa, holding VET generated VTHO per block; after Hayabusa, the generation condition changed to one related to VET locked across the network. The former “simply hold tokens to generate output” rule should not be treated as the current rule.

Question 12

How does the dual-token model distinguish value, participation, and transaction costs?

Accepted Answer

VET serves roles including native value, service access, and governance participation, while VTHO covers execution costs and creates a fee flow through base-fee burning and priority-fee rewards. The two are related, but VET's fixed supply does not mean VTHO is fixed, and changes in VTHO fees do not equal changes in VET's price.

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