As part of VeChain’s re-branding from VEN to VET they have agreed to launch a two-coin system in order to provide the Foundation the flexibility to create both a store of value and the appropriate means of managing costs of using VeChain’s Thor protocol.
Introducing VeChain THOR power
To fix the issue of transaction fees skyrocketing (looking at you BTC) and being very volatile, VeChain wants to make the blockchain more suitable for conducting business and financial activities for every party involved, both private and commercial/governmental.
VET will play the role of intermedium for value. The smart payment currency, which will enable rapid value circulation within VeChain’s ecosystem.
THOR will represent the underlying power of the VeChain Blockchain and will be consumed during the course of blockchain operations. Like transferring VET or executing contracts.
What does this mean for me as a VET holder?
If you are a holder of VET, you will be given THOR power for the use of running applications and smart contracts on the VeChain’s Blockchain.
How much can I earn?
The base generation of THOR Power will be:
- 0.00042 THOR Power per VET per day
- Approximately 0.15 THOR Power per VET per year
- To generate 1 THOR power per day requires 2381 VET.
Moreover you can earn even more THOR Power if you have enough VET to become a Master Node in the VeChain network:
- Strength Node – 10,000 – 49,999 VET. +38.7% more THOR Power
- Thunder Node – 50,000 – 149,999 VET. +57.0% more THOR Power
- Mjolnir Node – 150,000+ VET. +75.2% more THOR Power
Below are some calculations on what kind of returns you can get, per year, on the different Node levels. This is calculated on the base level for each node, ie, the lower bound for entry at each Node level.
Each column shows the return per year given different VET valuations.
|Mjolnir||$25 = $985,500||$10 = $394,200||$5 = $197,000||$2 = $78,840|
|Thunder||$25 = $294,275||$10 = $117,710||$5 = $$58,885||$2 = $23,542|
|Strength||$25 = $52,000||$10 = $20,805||$5 = $10,402||$2 = $4,161|
Even though the barrier of entry on becoming a Master Node is quite high, as you can see the payout can be amazing, and who knows, VET could moon even more and become a $50 or even a $100 coin!