VeChain (VET) has unveiled an innovative solution to tackle a long-standing issue in the blockchain industry. By implementing a dual token system consisting of VET and VTHO, VeChain aims to address the problem of unpredictable transaction costs on the blockchain.
The blockchain ecosystem has struggled with the challenge of fluctuating transaction costs for years. This is particularly significant as public blockchains rely on an economic system to regulate the behavior and distribution of tokens within the network.
To effectively tackle this issue, VeChain has introduced a Unique Two-Token System comprising VET (VeChain Token) and VTHO (VeThor Token). VET serves as a utility token for value transfers, while VTHO represents the underlying cost of utilizing the resources of the VechainThor blockchain, such as transactions and gas.
The dual-token model on VeChainThor ensures stable transaction costs, even in volatile markets. VET acts as a means to store value, while VTHO facilitates transactions, ensuring predictable costs. This system is particularly advantageous for those who prioritize reliability.
In a blog post, VeChain explained that the purpose of the dual token model is to shield transaction fees from direct exposure to price volatility. This is particularly relevant during bull markets when transaction costs rise alongside the general increase in token prices. The single-token blockchain model becomes more expensive and inconvenient to use due to the surge in fees caused by network congestion. The dual-token model prevents this issue and enables enterprises and individual users to predict future costs on the network.
VeChain now boasts four core flagship features: Meta-transaction features, Proof-of-Authority (PoA) consensus 2.0, an On-chain governance mechanism, and the Unique Two-Token System. In addition, VeChain has introduced ToolChain, a platform built on the VeChainThor blockchain that offers solutions ranging from product lifecycle management to carbon credit solutions and environmental sustainability reporting. ToolChain is currently available as platform-as-a-service (PaaS), software-as-a-service (SaaS), and blockchain-as-a-service (BaaS).
These initiatives have garnered positive predictions for the price of VET. Analyst Crypto Yaper believes that VET could experience a bullish reversal and reach $0.5. World Of Charts supports this prediction, stating that the asset is rebounding from a strong support level known as the Accumulation Zone Area. According to this analyst, VeChain could surge by 400-500% in the coming weeks.
Currently, VET is trading at $0.034, experiencing a 2% decline in the last 24 hours, a 17% decline in the last 30 days, a 23% decline in the last 90 days, and a 6% decline since the beginning of the year.
