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VeThor (VTHO)

Vechain's transaction / gas token.

VTHO
Text
Type
​VIP180​
Token contract address
0x0000000000000000000000000000456E65726779
Precision
18 decimal places
Supply
VTHO is the energy or the cost of carrying out the payment and smart contract transactions on the VechainThor blockchain.
Consumption
70% of the transaction fee paid in VTHO in each block is burned and the remaining 30% is rewarded to the Authority Masternode which produces the block.
What is a VIP180 token?
VIP180 is an implemented improvement proposal which defined a fungible token standard in vechain. VIP180 is a superset of the ERC20 standard on the Ethereum blockchain and is the most used fungible standard used across all blockchains. VTHO is the energy token used to power VechainThor. Transactions will be paid in VTHO and Authority Masternodes are paid in VTHO for producing blocks, securing and maintaining the chain.
Does VTHO have a max supply?
No, unlike VET, VTHO does not have a max supply. VTHO supply is governed by the generation and burning parameters, you can read more about the technical details in the last section of this page. VTHO parameters can only be altered via the transparent governance process and can be configured to increase or decrease the monetary supply. Currently, the supply is regulated by destroying 70% of the VTHO used for transaction costs. The other 30% will go towards the Authority Masternodes as a reward for maintaining the blockchain.
Why are VTHO burned?
Burning is when a fraction of the tokens are sent to a wallet without a private key, thus rendering the tokens irrecoverable as they cannot be moved from the wallet. Tokens are burned to attempt to control the supply of a token which in turn will control the market value. This mechanism allows vechain to be reactive to the amount of demand on the network. If the network witnesses greater adoption, the parameters can be reduced to allow for more VTHO to be circulated.
Do I earn VTHO?
Yes, by holding VET in a wallet, you can earn VTHO. Holding VET generates VTHO automatically, it is built into the protocol. Unlike many other blockchains, vechain users are not burdened with the task of staking with nodes to earn rewards.
VTHO generation formula
VTHO is generated from holding VET at a constant rate of 5⋅10−95 \cdot 10^{-9}5⋅10−9
 VTHO per VET per second or 0.000432 VTHO per VET every 24 hours. Mathematically, we can write it as:
​Egen=v⋅V⋅tE_{gen} = v \cdot V \cdot tEgen​=v⋅V⋅t
​
Where EgenE_{gen}Egen​
 denotes the amount of VTHO generated from holding VVV
 amount of VET. vvv
 is the VTHO generation velocity which is a constant equal to 5⋅10−95 \cdot 10^{-9}5⋅10−9
, per second. Let ttt
 be the amount of time in seconds. An example would be, if an individual had 10k VET in an account, they would generate 4.32 VTHO every 24 hours.
VTHO transaction cost formula
On the other hand, for each transaction, let GGG
 be the amount of gas required to process the transaction and ppp
 the transaction fee / gas price in VTHO given by the transaction sender, we can calculate the amount of VTHO consumed for the transaction as:
​Econ=p⋅GE_{con} = p \cdot GEcon​=p⋅G
​
The gas price ppp
 can vary in the range [pbase,2⋅pbase][p^{base}, 2 \cdot p^{base}][pbase,2⋅pbase]
 where pbasep^{base}pbase
 is a parameter that can be adjusted according to the market supply and demand of VTHO. Currently, we set pbase=1VTHO/Kgasp^{base} = 1 VTHO / Kgaspbase=1VTHO/Kgas
.

VTHO	Text
Type	VIP180
Token contract address	0x0000000000000000000000000000456E65726779
Precision	18 decimal places
Supply	VTHO is the energy or the cost of carrying out the payment and smart contract transactions on the VechainThor blockchain.
Consumption	70% of the transaction fee paid in VTHO in each block is burned and the remaining 30% is rewarded to the Authority Masternode which produces the block.

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Last modified 1d ago