A Chinese-oriented cryptocurrency sponsoring an American-based fighting championship, which is becoming the go-to reference for modern-day gladiator games. VeChain, with its extensive experience in crypto, is shifting its focus toward new goals beyond its original purpose. It has become a household name in the crypto world, boasting a strong following. Let’s take a closer look at VeChain, its proprietary blockchain, and its various applications.
VeChain is a blockchain platform with the blockchain named VeChain Thor, that originally focused on enhancing supply chain management, but has since expanded to provide broader data solutions including sustainability networks and Dapps .
VeChain has collaborated with major organizations like Walmart China, BMW, DNV, and even the government of San Marino. Their primary aim is to foster global sustainability and digital transformation of all things.
VeChain was co-founded in 2015 by Sunny Lu, former CIO of Louis Vuitton China, and Jay Zhang. It initially started as a subsidiary of Bitse, a major Chinese blockchain company, focusing on enhancing supply chain management.
The governance of VeChain is ‘community-driven’, supported by a steering committee and the VeChain Foundation.
This review of VeChain (VET) was created for informational purposes. This article is not intended for promotion.
VeChain stood out for its real-world applications in sectors like supply chain management, where it enabled businesses to track products through their lifecycle, healthcare for managing patient records, and so on.
According to Sunny (CEO), the supply chain management remains a vital part of VeChain’s offerings. However, since 2021, the company has expanded its focus to include the next generation of blockchain applications, particularly emphasizing sustainability.
Sustainability is not just an added feature but a central focus in VeChain’s strategy. Sunny views sustainability as a collective mission, requiring the effort and participation of everyone—not just a single company or government.
VeBetter is a network of sustainable purpose-driven apps integrated with the VeChain blockchain. Users can participate in various environmentally friendly activities and earn tokens as rewards.
Users can engage through VeBetter apps such as reducing plastic usage, saving water, managing waste, conserving energy, reducing carbon emissions, and saving timber.
The primary goal of Vbetter DAO is to shift the existing paradigm where sustainable actions often come with additional costs.
VeBetter hosts a variety of apps focused on different aspects of sustainability:
VeBetter also offers grants and funding opportunities to help developers launch and grow their apps.
VeTonsberg specializes in integrating IoT solutions into various products through tagging techniques. Where these tags are designed to be easily incorporated into products, and connect their offerings in the digital realm as well.
VeTonsberg offes a range of tagging solutions such as:
Maas enables brands to create their own digital marketplace on the VeChain platform, focusing on selling digital collectibles that link the physical and digital worlds.
It caters to both Web2 and Web3 users and supports fiat transactions, social logins, but also traditional payment methods like credit cards. Which is more preferred for some users.
Launching your marketplace on VeChain is a easy:
LTO also has a partnership with the UFC, where they want to redefine how fans interact with sports memorabilia and integrate VeChain’s NFC (tags) into UFC fighter gloves.
By integrating NFC (Near Field Communication) chips into UFC fighter gloves, fans will soon be able to tap their smartphones against the gloves to access fight information. Which will provide an immutable record of the gloves’ history, including details about the fights in which they were used. For true fans only…
USDGLO is a small stablecoin (3m market cap) and is the result of a collaboration between the VeChain Foundation and the Glo Dollar Foundation, a sustainability-focused organization that uses its treasury profits to support environmental initiatives.
Users can also swap VeUSD for USDGLO at a 1:1 ratio as part of a special initiative to help those impacted by Prime Trust’s bankruptcy. Additionally, Glo Dollars can be exchanged for USD or USDC on other networks.
VeChain has recently released its financial report for the fourth quarter of 2024. It’s important to note that the report only covers the last quarter of 2024 and does not include any market corrections that may have occurred since then.
Key highlights from the report include:
No addresses are included in their financial report to check these numbers…
VeChain utilizes a dual-token system, featuring the VeChain Token (VET) for value transfer and the VeThor Token (VTHO) to power transactions and smart contracts on the VeChainThor blockchain.
VET acts as “smart money” within smart contracts and is available for public purchase. In contrast, VTHO is used to cover the operational costs on the blockchain, functioning similarly to how Ether is used in Ethereum for dApp operations.
Recently, VeChain introduced an upgrade to its tokenomics, implementing new incentive models to enhance user participation and stakeholder profits. This is called the VeChain renaissance.
An upgrade that also aligns with strategies outlined in the “Web3 for Better” whitepaper, which emphasizes incentive-based models for driving blockchain adoption and sustainability.
VET is the native coin of the VeChainThor blockchain and facilitates transactions and interactions within the VeChain ecosystem.
The smallest unit of VET, equivalent to the ‘Satoshi’ in Bitcoin or ‘wei’ in Ethereum, is also called ‘wei’, where 1 VET equals 1,000,000,000,000,000,000 wei (10^18 wei).
The total supply of VET is capped at 86,712,634,466 tokens and the initial distribution of VeChain Token (VET) involved private investors receiving 90 million tokens, which represented 9% of the total supply. Additionally, the VeChain Foundation distributed more than 70% of all VET tokens.
This extensive distribution was conducted through a combination of methods including private and public sales, promotional activities, business collaborations, marketing initiatives, and research programs.
$B3TR is the token of the VeBetter ecosystem and is used for incentivizing and rewarding user actions, $B3TR helps drive transaction volumes on the blockchain, and generates demand for VET and VTHO. This, in turn, accelerates deflationary pressure and creates value at the protocol level. B3TR can be earned on VeBetter or bought on Bybit.
The VeChain Renaissance brings several key changes to the VET and VTHO tokens, from now on:
Under the new system, Validators replace Authority Masternodes and are responsible for running the network’s physical infrastructure.
Delegators, on the other hand, are VET holders who stake their tokens in exchange for Delegator Staking NFTs. These NFTs can then be delegated to Validators, allowing Delegators to earn a portion of the block rewards.
With the revised tokenomics, users engaged in staking can expect higher annual percentage yields (APYs) based on the amount of VET staked. For example:
VeChain has pivoted from being THE reference in supply management blockchain to directing its attention more to sustainability efforts. With a long survival in these volatile markets, they are still going strong, with a lot of followers.
The platform’s enterprise adoption is notable, with usage by Fortune 500 companies like BMW, Walmart, and LVMH. With their recent upgrade (VeChain Renaissance), they remain relevant.
As VeChain upgrades its strategy from general enterprise blockchain applications to focus more on sustainability, it looks to integrate these principles into all aspects of its operations.
This strategic shift involves using supply chain management as a foundational step for enterprises before they fully transition into broader web-based operations focused on sustainability. Is this enough for their token price to go up? We’ll see…
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