$VET renaissance
Its a huge shift in the ecosystem.
Lets start with the basics.
#vechain operates on a POA consensus- 101 validator nodes on chain. Over 3000 & xnodes exist, but they dont verify blocks on-chain, only authority nodes do that currently.
#centralized The landscape of
#blockchain regulation REQUIRES chains to be
#decentralized Vechain’s hand has virtually been forced to
#decentralize their network. This will happen through the RENAISSANCE event.
Vechain will go from 101 validator nodes, to over 3000 VALIDATOR nodes, fast.
So right now, you generate
$VTHO just by having VET in your wallet. Whats happening behind the scenes is basically your VET is being staked to one of those authority nodes (101) and it rewards you with VTHO. This is all about to change.
So now, all the nodes are gonna validate transactions- not just the 101. This will technically make vechain a PoS (Proof of Stake) blockchain, in which nodes compete for stake to mint blocks.
This means you will no longer accrue
$VTHO simply by holding VET. You will have to delegate (non custodial) to a node. You will choose which node you want to support.
Thats how you will get VTHO
Nodes will mint blocks (validate) and distribute those rewards (VTHO) to their delegators (stakers).
This means VET will be extremely scarce asset as many will seek their own node. VET isnt to be spent, or to vote, its the network token. The main ingredient.
We are about to be one of THE MOST DECENTRALIZED chains on Earth.
The Vechain ecosystem is thriving.