- Vechain Stargate introduces a dynamic staking model requiring active token staking to earn rewards, replacing the previous passive VeThor (VTHO) generation system.
- The StarGate system offers reward multipliers up to 5.0x for X-Node holders, incentivizing long-term commitment and higher staking volumes.
On July 1, the highly anticipated StarGate staking mechanism will be introduced to VeChain. Its implementation will lead to a major change in the process of network participation and the distribution of rewards. The new staking architecture is built with the idea of encouraging active participation and decentralization. It will feature increased benefits to X-Node owners and a more dynamic reward system that is dependent on network security.
About VeChain’s Stargate Staking Model
As reported by CNF, the StarGate project sets a considerable step in a new direction of producing VeThor (VTHO) tokens in a new non-passive manner. Under the former system, each VET token generated a fixed amount of VTHO daily. Such practice will end when the network is upgraded to Renaissance. Going into the future, users have no choice but to actively stake their tokens to gain protocol rewards.
As part of this upgrade, holders of X-Nodes, a special class of long-term VeChain supporters, will gain access to multipliers on their staking rewards, depending on the volume of VET staked. There are four tiers outlined with varying multipliers by the number of VET to be staked.
The tiers range from a 2.0x multiplier for those staking 600,000 VET (VeThor X) to a maximum 5.0x multiplier for holders of 15.6 million VET (Mjolnir X). According to VeChain, “X-Nodes unlocking reward multipliers up to 5.0x” underscores the value placed on committed network participants.
Further, as the transition approaches, VeChain has warned the community that it will stop X-Node upgrades on June 24. Any upgrade processes already underway prior to such date will not be revoked, but below that significant date, no additional tier advancements will be tolerated.
Staking NFTs Via Stargate Mechanism
One of the main features of the StarGate mechanism is the ability to add staking NFTs. These non-fungible tokens are created according to a user staking VET and will become a representation of the presence in the staking ecosystem.
The various staking roles include Delegator NFTs that share 70% of the block rewards. The remaining 30% is allocated to Validators—the network’s block producers—who also receive 100% of the transaction priority fees from the updated gas model.
The block reward pool has been diversified and increased, too. It now holds some share of newly created VTHO, gas tips, and bonus rewards that are distributed based on the node tier. This shift in incentive creates the same incentive among the network stakeholders so that they are willing to go deeper and have greater rewards.
The Renaissance upgrade is rearranging governance in the VeChain network. A weighted contribution model will establish varying influence depending on the role of a stakeholder and the Type of Node. Validators will have the highest impact with an effective staking weight of 2.0x, X-Node Delegator staking at 1.5x, and Economic Node Delegators at 1.0x.
Thus, it’s safe to say that VeChain plans to enhance both decentralization and security by incorporating multipliers, staking representation via NFTs, and a new governance structure.
