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- VeChain has unveiled its Hayabusa upgrade after the Galactica technical foundation went live on the mainnet.
- Hayabusa is meant to ensure a successful transition to the Delegated Proof of Stake (DPoS) while opening validation to participants with a minimum of 25 million VET.
VeChain (VET) has announced the launch of the much-anticipated Hayabusa upgrade to steer the consensus transition from Proof of Authority (PoA) to the Delegated Proof of Stake (DPoS). This marks a historic milestone in the Renaissance roadmap, underscoring the effort to institute a stake-based reward specifically for active network participants to move away from the passive VTHO generation.
How This Differs From the StarGate Program
In July, VeChain announced the launch of the new StarGate Platform to enhance its active staking and participation initiative. As detailed in our previous news article, a whopping amount of 5.48 billion VTHO ($15 million at that time) was committed to reward early participants.
While the StarGate NFT-based staking system operates independently, Hayabusa is meant to ensure that the updated staking mechanics are directly integrated into the consensus layer of VeChainThor. According to VeChain, voting for the Hayabusa VIP upgrades would begin on August 18 to complete the economic transformation of the VeChain Renaissance.
The transition to the DPoS consensus under the Hayabusa VIP would maintain the 101 Validators. However, there would be a change: validation would be open to participants with at least 25 million VET. According to the blog post, a Dynamic Tokenomics Implementation proposal (VIP-254) would also be introduced to “eliminate fixed VTHO generation rate of 0.000432 per VET daily.”
Above all, block rewards would be split with 30% going to validators while 70% goes to the Delegators. In the post, VeChain explained that this reduces the overall VTHO issuance and rewards only the active participants. In the long run, this would balance the incentives and motivate wider involvement in the ecosystem, as mentioned in our previous news brief.
This transformation creates systematic deflation through both reduced issuance and the permanent fee-burning mechanism activated by Galactica, positioning VET as a utility-driven deflationary asset powered by network participation and real-world adoption.
Unlike the PoA, the DPoS network consensus is reported to encourage inclusivity by recognizing VET holders as validators. According to the report, this ensures that everyone can contribute to the decentralization of the VeChainThor. With this, users would be able to earn block rewards even without the technical infrastructure requirements.
Previous Initiatives to Roll out the VeChain Renaissance Upgrade
Preparing the grounds for this crucial phase of the Renaissance roadmap, VeChain deployed the “Galactica” phase to introduce very crucial upgrades such as the dynamic fee market, Shanghai EVM compatibility, etc. As highlighted in our previous publication, this was followed by the StarGate which has its bootstrapping phase running till December 2025.
In all, the VeChain Renaissance is expected to completely burn the base transaction while lowering the VTHO inflation by 72.2%. As discussed earlier, this holistic upgrade would, in the end, improve three key areas in the VeChainThor: tokenomics, interoperability, and staking.
Currently, the hype surrounding this development has not reflected in the price of VET as it struggles to hold above its $0.024 support level after declining by 2% in the last 24 hours. According to our previous analysis, the asset has the potential to hit $0.1 in the medium term.
