VeChain Details Hayabusa Staking Model Ahead of Dec. 2 Mainnet Merge

• VeChain’s economic model states that there would be no VTHO reward for users who do not stake or delegate their VET after Hayabusa.
• Validators who help run the VeChainThor infrastructure are expected to receive 30% rewards.

VeChain (VET) has detailed the modus operandi of its Hayabusa staking model. In the publication, it was highlighted that its new economic model would no longer generate VTHO idly, but would be rewarded to those who actively participate in the network’s economic activities through StarGate.

This latest update follows recent confirmation that the process of the much-anticipated merge of Hayabusa with the VeChainThor mainnet would occur on December 2.

How Users Can Benefit From VeChain’s Hayabusa

According to the post, the easiest way to benefit from Hayabusa is to use StarGate to stake VET. In doing so, users would receive a staking NFT representing their collateral. From this point, users can either wait for a short maturity period to pass or use boost to skip the wait by paying a fee in VTHO.

Further explaining the process, VeChain pointed out that eligible NFTs could then be delegated to a Validator. Most importantly, the Validator reward cycle was reported to operate in 7, 14, and 30-day periods.

The first is the Delegator or staked VET. According to the post, users who contribute their stake to a Validator become a Delegator. In this case, they are only eligible to earn VTHO when their VET stake is delegated.

The second role, as stated by VeChain, is the Validator. They are primarily tasked with running the VeChainThor infrastructure. In exchange, they get 30% of block rewards in addition to 100% of any priority fees on produced blocks. The 70% of the block flow reward is then allocated to Delegators.

The last role of the new economic model is the non-staked VET holder. Individuals who choose not to stake or delegate their VET, according to the post, would not earn VTHO after Hayabusa. This is completely different from the old model, where VTHO was continuously generated for all holders regardless of their role.

Issuance now routes to Delegators and Validators only. In other words, VTHO is generated solely as a reward for those who commit stake and run or support Validators. At the same time, VeChain’s fee system burns the base fee of every transaction. As adoption grows, burn scales up and accelerates deflationary effects for VTHO.

VeChain also mentioned VeBetter, claiming it could transform the ecosystem together with the latest staking model. VeBetter is known for rewarding real-world, useful actions. Interestingly, the post explains that there is another side. It claims all of these actions become on-chain transactions, which consume VTHO gas.

Technically, the transaction was reported to “package into a block,” which ensures that the reward stream for Delegators and Validators is generated. What this means is that the more brands and communities build into it, the stronger the foundation for the staking rewards.