Key Takeaways:
- The VeChain Hayabusa upgrade transitions the network from Proof-of-Authority (PoA) to Delegated Proof-of-Stake (DPoS).
- The upgraded tokenomics model will end the VTHO passive generation, and rewards will exclusively be tied to active staking.
- The plan is to launch the mainnet sometime in late December 2025 after successful tests on devnet.
Table of Contents
A Renaissance for VeChain
The VeChain Hayabusa Upgrade marks the largest advancement in the blockchain’s history, as it integrates the project, investors, and community into an official community-governed decentralized network. This change represents a philosophical shift, rather than just an adjustment to the underlying technology.
Upon the Hayabusa Upgrade, VeChain will abandon the enterprise-centric Proof-of-Authority (PoA) model for Delegated Proof-of-Stake (DPoS), allowing its community of VET token holders to become engaged delegators and validators and earn rewards for directly securing the decentralized network.
Key Changes: DPoS and Dynamic Economics
The VeChain Hayabusa upgrade consists of two important VeChain Improvement Proposals (VIP):
- First, the VIP-253 deploys the Delegated Proof of Stake (DPoS), which allows VET token holders to stake VET to become validators (with a minimum of 25 million VET) or delegate their tokens to a validator. At the same time, validators will earn block rewards and share 70% of those rewards with their delegators, creating a competitive and accountable validator ecosystem.
- Second, VIP-254 makes a drastic change to VTHO tokenomics. The method of generating VTHO gas tokens will no longer be static and passive; it will be discontinued. Under the upgrade, only VET token holders who actively stake in the DPoS network will generate VTHO. The issuance of VTHO will now be dynamic upon how much VET a user stakes in the system versus the total amount of VET staked. To this point, VIP-254 will create some level of deflationary pressure, better aligning the value of VTHO with network usage and demand.
Market Implications and Next Steps
The Hayabusa devnet is available for builders and users to interact with the new product mechanics. If all goes according to plan, mainnet will be launching in late December. Industry analysts are looking closely. Michael van de Poppe, for example, has publicly stated that the successful implementation of the Hayabusa upgrade could drive VET prices up, potentially breaking key resistance levels as new staking demand enters the ecosystem.
In addition, the project is launching the VeChain Global Hackathon on September 22 with $30.000 grant-based prizes.
Read also: Solana Alpenglow Upgrade: 150ms Finality Could Make It Faster Than Stock Exchanges
The Bet on Decentralization
The VeChain Hayabusa Upgrade is a solid bet that its future lies in decentralized participation from the community, and not only enterprise partnerships. The upgrade will force staking as a form of value returned to network users, which should provide improved security, resilience, and economic fundamentals for the project.
For those holding VET for the medium to long term, the day of passive holding without active participation is officially over. The new method aims to capture and secure value in the VeChain ecosystem.
Final Thought: Will VeChain’s risk on decentralization attract a new wave of crypto natives and keep enterprise interest?
FAQs
What is DPoS?
Delegated Proof-of-Stake refers to a consensus mechanism where token holders vote to elect a group of validators to secure the network on their behalf, often for a share of the rewards.
Do I still earn VTHO just by holding VET tokens?
No. After the upgrade, VTHO generation is exclusively tied to actively staking your VET tokens within the new system.
When is the VeChain Hayabusa upgrade happening?
The changes are currently on devnet for testing. The planned mainnet activation is for late December 2025.
For more blockchain upgrades, read: Injective Soars 18% as Ethereum-Compatible Testnet Ignites DeFi Space
