VeChain Rolls Out StarGate 2.0 Upgrade, Ushering in New Era of Staking for VET

• VeChain (VET) has officially launched Hayabusa alongside StarGate 2.0. 
• Based on the new model, users would be rewarded based on their active participation in the network. 

The second stage of the much-anticipated VeChain Renaissance technical roadmap is officially live, marking the launch of StarGate 2.0 along with Hayabusa. This implies that Validators have up to December 9 to fully onboard and complete the first reward cycle.

According to reports, StarGate would act as the main entry point of Hayabusa’s economic model to support scalable participation.

What to Expect From the Upgrade

The official upgrade would see the introduction of Delegated Proof-of-Stake, shifting from a limited validator system. On top of this, there would be a revamp of the tokenomics to align with the MiCA regulatory framework.

According to a blog post, this exciting launch unlocks the full VeChain StarGate staking model, which rewards active participation in the network’s economic activities. In other words, users are required to actively delegate under the new model to earn rewards. This was confirmed in our previous blog post, which highlighted that VET would no longer generate VTHO by themselves.

With the StarGate 2.0 rollout alongside the Hayabusa launch on the mainnet, a number of features are expected to be offered to make the ecosystem a more user-centric environment. Specifically, this includes lower VTHO inflation, greater decentralization, greater reward Annual Percentage Yields (APYs), predictable low-cost fees, and superior economic activities.

VTHO was previously generated continuously for all VET holders, leading to inflationary issues. Interestingly, the new generation tied to active usage would reduce inflation by up to 40%, according to reports. Meanwhile, concerns have been raised regarding the requirements to stake or delegate, as it is claimed that this may lead to a learning curve that scares off casual holders.

To benefit from Hayabusa, users have been asked to stake VET using the new StarGate platform. In return, they would receive a staking NFT. From this point, users are reported to have the option to either wait for the short maturity period to pass or pay a fee in VTHO to skip the wait.

Users who contribute their stake to a Validator, under the new model, become a Delegator. Also, Validators get 30% of block rewards and 100% of any priority fees on blocks they produce.

VeChain (VET) Price Analysis

The price of VET has recorded a 9% surge in the last 24 hours to trade at $0.013. However, its weekly and monthly gains remain negative, as they fall by 0.8% and 12% respectively. Also, traders’ interest has begun to rise as the 24-hour trading volume surges by 10% to $35.9 million.

Commenting on the price behavior, an analyst identified as Brain2jene disclosed that VeChain is approaching what he termed the “Reversal Zone.” Per his observation, the strongest support for the asset is currently around the $0.0107 level.