VeChain Launches Hayabusa Testnet — Transition to DPoS Kicks Off Ahead of December Mainnet Upgrade

• VeChain shifts from PoA to DPoS, opening governance to broader participation.
  
• Hayabusa upgrade changes VTHO generation, rewarding active stakers.
  
• Institutional partnerships and staking activity could drive VET price growth.

VeChain (VET), co-founded by Sunny Lu in 2015, is taking a major step in its “VeChain Renaissance” roadmap. The blockchain network is moving from its long-standing Proof-of-Authority (PoA) system to a more decentralized Delegated Proof-of-Stake (DPoS) model. The change aims to expand participation and increase governance transparency while maintaining the speed and reliability VeChain is known for.

The Hayabusa Testnet has officially launched, initiating a seven-day transition period for validators. VeChain announced that automatic VTHO generation has paused, and validators can now queue to switch to DPoS. The transition is set to conclude on November 11th at 11:39:30 UTC, with the mainnet upgrade scheduled for December 2.

What the Hayabusa Upgrade Changes

Voting for Hayabusa concluded with overwhelming support: 98.39% approval, 0.23% disapproval, and 1.39% abstentions. Under DPoS, 101 validators will produce blocks and secure the network. VET holders can participate indirectly through staking via StarGate, delegating to validators, and earning rewards based on a tiered system. Validators receive 2x rewards, X-Node Delegators 1.5x, and Economic Node Delegators 1x.

VTHO generation, previously passive under PoA, now requires active staking or delegation. Block rewards are split 30% to Validators and 70% to Delegators. As more VET locks into staking, the circulating supply for new VTHO decreases, fostering a more sustainable token economy.

Also Read: VeChain (VET) Accumulates at $0.016, Traders Eye Potential 5x Rally

Institutional Partnerships Boost VeChain

VeChain continues to expand its ecosystem through partnerships. Collaborations with Keyrock provide liquidity and trading infrastructure, while integration with Franklin Templeton’s tokenization platform, BENJI, broadens VeChain’s institutional reach. These moves, combined with Hayabusa, may position VET for a price rally, potentially reaching $0.095, a roughly 570% increase from current levels despite recent market dips.

Looking Ahead

VeChain’s shift to DPoS represents a pivotal moment in its history. With new validators joining the network and staking activity rising, the upgrade could redefine governance and token economics. For investors and blockchain enthusiasts, Hayabusa may mark the start of a more decentralized, participatory, and robust VeChain ecosystem.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Andrew Chen

I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.