VeThor Token VTHO / VeThor Token

What Is VeThor Token (VTHO)?

Key Insights

VeThor Token (VTHO) is the gas token of the VeChainThor public blockchain. It is used to pay for transactions, smart-contract execution and other onchain operations.

VeChainThor uses a dual-token economic model consisting of VET and VTHO.

VET is VeChainThor’s native asset and staking collateral. It is used to participate in network security through validation and delegation.

VTHO is the network’s operational token. It is consumed when users, applications or businesses submit transactions and execute smart contracts.

Separating VET from VTHO allows VeChainThor’s transaction-fee system to be managed independently from the market price of VET. This is intended to provide more predictable operating costs for applications and businesses using the blockchain.

Following the Hayabusa upgrade in December 2025, VTHO is no longer generated simply by holding VET. New VTHO is issued dynamically through block rewards to validators and delegators who actively stake VET and contribute to network security.

How Does VeThor Token Work?

Every operation performed on VeChainThor requires computational resources. VTHO is used to pay for these resources, including:

- Transferring tokens. - Executing smart contracts. - Recording data onchain. - Minting or transferring NFTs. - Interacting with decentralized applications. - Processing enterprise and consumer application activity.

The amount of VTHO required for a transaction depends on the computational resources used and the network’s dynamic fee conditions.

VeChainThor’s fee market divides a transaction fee into two components:

- Base fee: The protocol-determined minimum fee required for a transaction. The base fee is burned and permanently removed from the VTHO supply. - Priority fee: An optional additional fee paid to the validator that produces the block.

The base fee adjusts according to network usage, while users can include a priority fee to make their transactions more attractive to validators.

VTHO Generation and Distribution

The Hayabusa upgrade introduced dynamic VTHO issuance under VIP-254.

Before Hayabusa, VTHO was generated at a fixed rate by holding VET. This passive generation model was discontinued in December 2025.

Under the current model, VTHO is generated through block rewards and distributed exclusively to network participants who actively secure VeChainThor by staking VET.

Participants can earn VTHO as:

- Validators: Operators that maintain network infrastructure, produce blocks and provide at least 25 million VET in self-stake. - Delegators: VET holders who stake through StarGate and delegate their staking NFT to an active validator.