Consider an investment in the VeChain ecosystem ahead of its significant Hayabusa network upgrade. Holding VET is a long-term investment on the network's growth, as its value is designed to increase with user adoption. The upcoming upgrade will require users to stake VET to earn the network's gas token, VTHO, creating a strong incentive to hold the asset. Alternatively, VTHO offers a more direct play on the network's daily transaction volume. The Hayabusa upgrade is expected to reduce the available supply of VTHO, which could increase its price if network activity remains strong or grows.

VeChain (VET)

• VeChain uses a two-token system to separate the asset's value from its transaction costs. VET is the primary value-storing token.
• Holding VET automatically generates the network's secondary token, VTHO.
• The value of VET is designed to increase as network usage grows. As more people use the network, the demand for VTHO rises, which in turn increases the value of the VET that generates it.
• A major upgrade called Hayabusa, part of the "Renaissance Roadmap," will change how VTHO is generated.
  • Following the upgrade, VTHO will only be generated by staked VET.

Takeaways

• The investment thesis for VET is a bet on the long-term adoption and growth of the VeChain ecosystem. As more applications (like the mentioned VBetter app) are used, the underlying value of VET is expected to increase.
• The Hayabusa upgrade is presented as a bullish catalyst. By requiring users to stake VET to earn VTHO, it creates a stronger incentive to hold and lock up the token, which could positively impact its value.
• Investors might see holding and staking VET as a way to gain exposure to the growth of the entire VeChain network and earn passive yield in the form of VTHO.

VeThor Token (VTHO)

• VTHO is the "gas" token of the VeChain network, used to pay for all transactions.
• Its purpose is to keep transaction fees stable and predictable, which is attractive for businesses, even if the price of VET fluctuates.
• Demand for VTHO is directly tied to network activity—more transactions mean more demand for VTHO.
• The upcoming Hayabusa upgrade is expected to reduce the "extra supply" of VTHO.

Takeaways

• VTHO's value is a direct reflection of the current transaction volume on the VeChain network. It can be seen as a proxy for the network's real-time utility.
• The Hayabusa upgrade could create upward price pressure on VTHO. By restricting its generation to only staked VET, the overall supply of new VTHO is reduced, which could increase its price if demand remains constant or grows.
• For investors, VTHO represents a more direct play on the day-to-day usage of the VeChain platform, as opposed to the long-term value storage proposition of VET.