# 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.
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Velocity
# VeChain Token (VET)
VET | |
---|---|
Type | Native Coin |
Precision | 18 decimal places |
Total supply | 86,712,634,466 |
# VeThor Token (VTHO)
VTHO | |
---|---|
Type | VIP180 (opens new window) |
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 |