# VeChain (VET) | VET Characteristics | Details | | ------------------- | ----------------- | | Type | Native Coin | | Precision | 18 decimal places | | Total supply | 86,712,634,466 | ## Native Coin: The Backbone of VeChainThor A native coin is the primary cryptocurrency inherent to a specific blockchain network. As VeChainThor's native coin, VET serves as the fundamental unit of value and plays multiple crucial roles within the ecosystem: * **Medium of Exchange**: Facilitates value transfer within the network. * **Store of Value**: Acts as a digital asset that can appreciate or depreciate in value. * **Utility Token**: Enables access to various features and services on the VeChainThor blockchain. * **Governance Mechanism**: VET holders can participate in network governance decisions. ## VET's High Divisibility: 18 Decimal Places VET's high divisibility, with 18 decimal places, offers several advantages: * **Micropayments**: Enables extremely small transactions, crucial for many blockchain applications. * **Precision**: Allows for exact value representation in various use cases. * **Scalability**: Supports a wide range of transaction sizes, from tiny micropayments to large transfers. * **Future-proofing**: Provides room for value appreciation without limiting usability. The smallest unit of VET, similar to Bitcoin's Satoshi, and just like in Ethereum, is called 'wei': 1 VET = 1,000,000,000,000,000,000 wei (10^18 wei). This high divisibility makes VET particularly suitable for: * Internet of Things (IoT) applications * Micro-incentivization in sustainability initiatives * Precise value allocation in complex supply chain scenarios ## Total Supply: Fixed at 86,712,634,466 VET The total supply of VET is fixed, meaning no new tokens will ever be created. This fixed supply model offers several benefits: * **Scarcity**: Creates a deflationary aspect to the token economics. * **Predictability**: Allows for more accurate long-term economic modeling. * **Transparency**: Provides clarity to users and investors about the token's distribution. * **Value Proposition**: Can potentially drive value appreciation as demand increases against a fixed supply. ## Implications of a Fixed Supply * **Long-term Value**: As adoption grows, the fixed supply could lead to appreciation in VET's value. * **Economic Stability**: Prevents inflationary pressures that come with an ever-increasing supply. * **Trust**: Builds confidence among users and investors due to the predictable token economics. By combining high divisibility with a fixed total supply, VET is designed to serve as a versatile and sustainable utility token within the VeChainThor ecosystem. This design supports a wide range of applications, from microtransactions in IoT devices to large-scale enterprise solutions, while maintaining a stable and predictable economic model. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.vechain.org/introduction-to-vechain/dual-token-economic-model/vechain-vet.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.