VeChain (VET)
VeChainThor-The public blockchain that derives its value from activities created by members within the ecosystem solving real world economic problems
What is VeChain?
The VeChainThor is a public blockchain that is designed for mass adoption of blockchain technology by enterprise users of all sizes. VeChainThor is intended to serve as a foundation for a sustainable and scalable enterprise blockchain ecosystem, supported in part by our novel governance and economic models and unique protocol enhancements. (Source: VeChain.Org)
VeChain: Economic Model
The unique two-token system (VET+VTHO) significantly helps separate the cost of using blockchain from market speculation. Due to the correlation with the blockchain resource utilization, the cost is more predictable with the monitoring of the VTHO supply and demand. In addition, Foundation's governance mechanism further stabilizes the cost.
VTHO generation from any address holding VET at the predetermined velocity of 5x10-8 per VET per block (10s)
70% of VTHO paid in each transaction is destroyed and the rest is awarded to the Authority Masternode Operator
Adjustment to variables (e.g. gas price, velocity) can be made to maintain the equilibrium of VTHO demand and supply (Source: VeChain.org)
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.
Discover VeChain APPS
Resources for Users and Developers
The VeChain Website, is wonderfully organized to help individuals explore, learn, and interact with members of the VeChain Community. Furthermore, there are a plethora of tutorials and learning materials to quench the thirst of your developing needs .
VeChain Governance
The balance between decentralization and centralization ensures efficiency and transparency. Community-elected Steering Committee, as the governing body of the ecosystem, facilitates decision making and execution supported by the on-chain governance mechanism.
Role-based voting reduces the uncertainty in the platform’s technical and organizational development
On-chain governance mechanism which is divided into three phases - propose, approve, and execute, is designed to support the governance model
Reduction of Carbon Emissions (ECO Friendly Blockchain?!?!)
While many efforts have been made by enterprises and industrial experts on this Carbon Reduction, with the adoption of blockchain technology driven by pioneers with industry expertise these issues could be addressed.
VeChain and DNV initialized the low carbon emission ecosystem with a few pioneer companies. The roles in this ecosystem are as follows:
1. CER (Carbon Emission Reduction) generator – the platform digitalizes, qualifies and quantifies user behavior as individual CER contributors through IoTs and the others from different use cases such as driving electric vehicle, electric charging station use, carpooling, public transportation use, eco-friendly household appliance
2. CER validator – the experts such as DNV verify user behaviors based on collected data and issue the quantified proof. The validation process is executed by smart contracts for transparency and integrity
3. CER consumer – the sponsors such as enterprises and organizations who are willing to provide products, services or financial incentives to motivate individual CER contributors
4. Technical supporter – the technical provider who develops and launch the technical infrastructure and provides technical support to maintain this platform
5. Regulator – Authorities who can create the regulations to define the fair rules to monitor and motivate everyone in the system
Price Prediction
I believe based of the latest developments and the recent influx of new interest in VeChain, that VeChain will begin trading around .11 by April 21st, 2021 and sustain that price for 1-2 weeks before making the climb to .13+. If VeChain can sustain this movement I believe VeChain can make the climb to .50+ by August of this year.
Overall Thoughts and Feelings about VeChain
I personally, believe VeChain has the ability to change the landscape of blockchains by demonstrating a persistent belief to reduce carbon emissions and energy usage through a variety of clever ways, without endangering their business model or ability to scale.
Please note these are just thoughts and by no way am I a Financial Advisor. I also do hold a small position in VeChain
Sources:
All information gathered for this post is from VeChain.Org