What is VeChain (VET) and what is it used for?

VeChain is a layer 1 blockchain designed for companies, best known for tracking goods through supply chains. Its network, VeChainThor, runs smart contracts compatible with Ethereum's tools and uses a two-token model. As of October 2026, the project describes itself as a trust layer for AI and business and says more than 350 applications have launched on it.

What is VeChain used for?

The classic use is traceability. A business records each step in a product's life on the chain, such as origin, inspections and shipping, so others can check it later. In June 2019, Walmart China began using VeChainThor to trace food. Shoppers could scan a barcode to see a product's source, inspection records and logistics reports. By then, 23 product lines had been launched.

This is one form of tokenization, in which real-world items get a digital record on a blockchain. The record is only as reliable as the data entered at each step, which still depends on the companies involved.

More recently the project has leaned into consumer and sustainability apps. VeBetter rewards users for everyday habits with environmental impact, and VeWorld is the project's wallet.

How do VET and VTHO work?

VeChain splits two jobs that most blockchains give to one coin.

• VET is the main token. Holders stake it to secure the network and earn rewards.
• VTHO is the gas token, used to pay transaction fees.

Before Hayabusa, simply holding VET generated VTHO. Under the new rules, only staked VET earns it. Hayabusa also added a fee system modeled on Ethereum's, in which base fees are burned and tips go to validators.

What changed with the VeChain Hayabusa upgrade?

VeChain launched in 2017 using proof of authority, in which approved operators produced blocks. Hayabusa, its eighth hard fork, switched it to delegated proof of stake. The StarGate docs scheduled the mainnet release for December 2, 2025, with a transition period ending December 9.

Under the new model:

• Validators run VeChainThor nodes and stake at least 25 million VET. The active set holds 101 validators, and others wait in a queue.
• Delegators stake VET through StarGate, receive an NFT that represents their stake, and assign it to a validator. The smallest tier requires 10,000 VET.
• Rewards in VTHO are shared between validators and delegators in a 70:30 ratio.

Validators choose validation periods of 7, 15 or 30 days, and one that misses blocks for seven straight days is removed. The general idea of earning rewards this way is covered in what is crypto staking.

Who runs VeChain?

The VeChain Foundation steers the project, and its chief executive is Sunny Lu. Under the old system, block producers were approved by the project. Since Hayabusa, the company describes validators as public and permissionless, although the 25 million VET entry level means relatively few parties can run one.