VeChain’s groundbreaking Renaissance Update is scheduled to debut in July 2025. What changes can we expect for $VET?

The upcoming VeChain Renaissance upgrade is expected to enhance tokenomics, staking, and interoperability. This will likely lead to greater adoption of the VET Token and an increase in its value. The much-anticipated VeChain Renaissance is scheduled to launch in July 2025, generating enthusiasm among community members. This update introduces a new staking mechanism that moves away from simply receiving passive rewards, significantly transforming the VET token landscape. It heralds the VeChain Renaissance. A member of the VeChain community named Splendid discussed important aspects of the Renaissance upgrade on the social media platform X. Splendid highlighted that the upgrade aims to enhance three main aspects of VeChainThor: tokenomics, staking, and interoperability. The Renaissance upgrade transforms the protocol’s economic framework by eliminating 100% of the base transaction fees and reducing VTHO inflation by 72.2%. As a result, both Validators and Delegators, classified as active stakers, will earn rewards for maintaining network security. Additionally, with the transition to VeChain Renaissance, users are required to actively stake their VET in order to obtain rewards, enhancing both the decentralization and security of the network. In our previous analysis, we discussed how the staking system incorporates Delegator NFTs, which represent different levels of commitment to VET. Delegators will be allocated 70% of the block rewards, whereas Validators, who create the blocks, will receive the other 30%. This updated structure intends to create a balanced incentive system to encourage greater participation in the ecosystem. As reported by Splendid, StarGate is introducing a new staking system that features a bonus pool of 5.48 billion VTHO, allowing X-Nodes and Economic Nodes to stake alongside 101 Validators. Additionally, the Renaissance upgrade will incorporate Ethereum Virtual Machine (EVM) and JSON-RPC integration.