Major Tokenomics Shift Coming in December 2025
VeChain is preparing for what might be its most significant economic change yet. In December 2025, the network will transition from its long-standing fixed VTHO generation model to a dynamic system that directly ties gas token production to staking participation. I think this represents a fundamental rethinking of how the ecosystem rewards engagement.
The current system has been running for years with a predictable output—5 × 10⁻⁹ VTHO per VET per second. That translates to about 13.7 billion VTHO annually across the network. It’s straightforward, but perhaps too rigid for a maturing blockchain. The new approach creates a range of possible outcomes based on how much VET people actually lock up.
How the New Model Actually Works
Looking at the project’s data, the difference is pretty striking. If only 2.6% of VET gets staked, the network would generate around 3.86 billion VTHO per year. But if participation jumps to 75% of the supply, that number climbs to nearly 19 billion annually. That’s quite a spread, and it makes staking much more consequential for the overall economy.
What I find interesting is that VTHO will only go to staked VET now. Tokens sitting idle in wallets won’t contribute to the supply. This seems like a deliberate move to encourage active participation rather than passive holding. It gives validators more economic backing and should help stabilize the network, though we’ll have to see how it plays out in practice.
The Transition Process and Timing
This is part of the broader Hayabusa upgrade that’s shifting VeChain from Proof of Authority to Delegated Proof of Stake. The testnet already completed this transition back in November 2025, which suggests they’ve been testing this for a while. The mainnet activation starts December 2nd with a seven-day window where VTHO generation completely pauses.
That week-long pause might cause some temporary disruption, but it’s probably necessary to ensure a clean switch. After December 9th, the dynamic system kicks in and runs continuously without fixed schedules. The amount of VTHO produced each year will simply depend on how much VET is staked at any given moment.
What This Means for Participants
This creates a direct link between staking commitment and the flow of VTHO. Users who delegate their tokens effectively become more invested in the network’s success. The system doesn’t need extra mechanisms to align incentives—the economics do that work naturally.
While VET’s price has been relatively stable around $0.01579 recently, this change could potentially affect token dynamics. Higher staking participation means more VTHO in circulation, which might influence transaction costs and overall network activity. But honestly, it’s hard to predict exactly how the market will respond to such a fundamental shift.
The upgrade represents a move toward more responsive tokenomics where yearly issuance depends on actual network participation rather than predetermined figures. It’s a significant step for VeChain’s evolution, and all eyes will be on that December transition to see how smoothly it goes.
