Two-token Design

Concept
Financial characteristics are inherent in every blockchain. A proper economic model is one of the fundamental elements in a blockchain ecosystem, and a key factor for its success. We have learned from our business partners, especially corporations and enterprise business owners, that one of major obstacles to adopting blockchain technologies is the unpredictability of the cost of using blockchain, thanks to the volatility of cryptocurrencies. To tackle the problem, we design a bi-token system that includes the VeChain Token (VET) and VeThor Token (VTHO). The function of VET is to serve as value-transfer medium, or in other words, smart money, to enable rapid value circulation within the VeChainThor ecosystem. On the other hand, VTHO represents the underlying cost of using VeChainThor and will be consumed (or, in other words, destroyed) after on-chain operations are performed. According to our design, VTHO is generated from holding VET with a constant speed. In this way, we are able to detach the direct cost of using VeChainThor from the VET price. Let be the amount of VET, the amount of time (in terms of the number of blocks) and the VTHO generation speed. Mathematically, we can write
​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
 VET. On the other hand, for each transaction, given GGG
 be the amount of Gas required to process the transaction by the system and ppp
 the 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
​
Velocity vvv
 is a constant equal to 5⋅10−85 \cdot 10^{-8}5⋅10−8
 VTHO per VET per block. In other words, if you had 10K VET, you would be given at most 4.32 VTHO every 24 hours. 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
.
VeChain Token (VET)
VET
Text
Type
Native Coin
Precision
18 decimal places
Total supply
86,712,634,466
VeThor Token (VTHO)
VTHO
Text
Type
​VIP180​
Token contract address
0x0000000000000000000000000000456E65726779
Precision
18 decimal places
Supply
VTHO is the energy or the cost of carrying on the payment and smart contract transactions on the VeChainThor blockchain. VTHO is generated from VET in each block over time in a linear manner. (0.00000005VTHO is generated per VET per block)
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

VET	Text
Type	Native Coin
Precision	18 decimal places
Total supply	86,712,634,466

VTHO	Text
Type	VIP180
Token contract address	0x0000000000000000000000000000456E65726779
Precision	18 decimal places
Supply	VTHO is the energy or the cost of carrying on the payment and smart contract transactions on the VeChainThor blockchain. VTHO is generated from VET in each block over time in a linear manner. (0.00000005VTHO is generated per VET per block)
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

Introduction

Proof of Authority

Last modified 1mo ago