VeChain Positioned for Growth as Sustainability and Utility Expand

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• VeChain’s Galactica upgrade enhances blockchain efficiency, security, and Ethereum compatibility.
• Stakeholders vote on VIP upgrades, shaping VeChainThor’s future development and tokenomics.

VeChain (VET) is moving forward with its Renaissance upgrade, introducing Galactica to enhance blockchain efficiency and interoperability. The project aims to optimize tokenomics and strengthen VeChainThor’s infrastructure. 

Stakeholders will vote on proposed upgrades starting February 24. These developments reinforce VeChain’s role in blockchain adoption and cross-chain compatibility.

New VIP Upgrades Aim to Improve Efficiency

VeChain has launched the Galactica phase, a crucial step in the broader VeChain Renaissance initiative. According to VeChain, this upgrade includes four VeChain Improvement Proposals (VIPs) that enhance the blockchain’s security, efficiency, and utility. These include a Dynamic Gas Fee Market (VIP-251), Typed Transactions (VIP-252), an Ethereum Virtual Machine (EVM) upgrade (VIP-242), and an Extension Contract update (VIP-250).

VIP-251 replaces the fixed-fee model with a dynamic gas pricing mechanism, similar to Ethereum’s EIP-1559. Under this proposal, 100% of base fees are burned, reducing the VTHO supply and promoting network efficiency. VeChain states that this mechanism improves transaction speed while reducing spam risks.

VIP-252 introduces a structured transaction format to streamline contract interactions. This update allows VeChainThor to integrate new features without disrupting the network. By standardizing transactions, it ensures a smoother evolution for the blockchain ecosystem.

The third proposal, VIP-242, aligns VeChainThor with Ethereum’s Shanghai upgrade, increasing its compatibility with Ethereum-based applications. This enhancement enables developers to use Ethereum-native tools within the VeChain ecosystem, expanding VeChainThor’s cross-chain functionality.

VIP-250 simplifies smart contract execution by adding new functions that optimize development workflows. VeChain acknowledges the contributions of the community in shaping this update, reinforcing its commitment to a developer-friendly environment.

Stakeholder Voting and Future Roadmap

The voting process for these VIPs began on February 24, allowing Authority Masternodes, Economic Nodes, and X Nodes to participate in shaping the network’s future. VeChain states that this decentralized governance approach ensures stakeholder engagement in decision-making.

VeChain’s Renaissance upgrade extends beyond Galactica, with upcoming phases including Hayabusa and Interstellar. These future updates will further refine VeChainThor’s economic structure and blockchain capabilities.

As featured in our recent coverage, VeChain is restructuring its staking model. A new NFT-based staking system introduces Delegator NFTs to represent varying levels of VET commitment. Seventy percent of block rewards will go to Delegators, while 30% will be allocated to Validators and block producers.

VeChain Boosts Blockchain Adoption with Strategic Moves

VeChain’s roadmap reflects its goal of increasing adoption through sustainability and interoperability. As part of its expansion strategy, VeChain encourages community participation through discussions on Discord and Telegram. Stakeholders can also gain insights from the upcoming AMA session with CEO Sunny Lu.

VeChain has strengthened its blockchain framework by securing key U.S. patents aimed at improving property rights transfer and workflow certification. As reported by ETHNews, the company’s subsidiary, NanoJClean, received approval for a patent titled “Property Right Confirmation & Transfer Methods, Systems, Electronic Device, & Storage Medium” (US Patent Number 12,243,115 B2). 

Analysts expect these developments to drive growth, with forecasts predicting a 16.5% price increase by mid-March 2025, as noted in our earlier post.

VeChain has also gained visibility through a $10 million sponsorship deal with Dana White’s Power Slap. The agreement includes branding on athlete kits and event sponsorships, further expanding its presence in sports and entertainment.