$0.00689 -18.72%
VET · 2d

A lot of people seem to confuse VTHO and VET in terms of utility and value (Same with EOS)

*This discussion is purely about the utility presented in the Economic model. VET has utility outside of VTHO but I will not address that added value here.* VTHO is the only necessary token to use the VeChainThor Blockchain. VET is never used to interact with the blockchain, never. VET acts as value transfer. Why does that matter? Because the value being transferred is more future use of the blockchain, which is valuable. **What does that actually mean?** It means that VET represents capacity of the blockchain. There can never be more VTHO than the VET has generated. To that extent, 1% of the entire VET supply represents \~1% of the blockchains use case. By transferring VET between parties you are transferring a % of future use of the blockchain. This is true value and truly smart money. Some people like to compare the thoughts of VET as a subscription service. You can either pay per use or you can pay for a license to the product and use it indefinitely. VTHO is the per use and VET is the license. The only difference in reality is that the license represents a total use of the blockchain and not an endless use of the blockchain. In all reality, this is very similar to EOS's model. In their model they use RAM (similar to VTHO) and EOS tokens which represent a 1:1 share of the blockchains use. So congrats, VeChain could have also marketed the blockchain as "free to use" like EOS has, but they are smarter than that. Differently than EOS, VeChain allows for future distribution of capacity. Why? Three reasons that come to my head is: 1. ScalabilityIf the VeChainThor Blockchain goes from 50tps to 10k TPS in a month and a company only needs 1% of 50tps and not 1% of 10k tps they can create residual earnings without sacrificing potential voting rights or removing their ability to leverage smart money in the future. Unlike EOS who simply throws out that capacity. 2. Unused capacityBy making VTHO tradable, not completely burned (only 70% is burned on use), and dynamic (not all transactions are completed equal), the use of the blockchain is complex and so is estimating its capacity. By making VTHO and ever growing, burning, and liquid asset, the excess capacity can move between parties freely. This in turn brings the most value added to the blockchain as when closer to max capacity, more transactions can be had. 3. Power distribution to the end users, not just the application ownerIf VeChainThor really becomes the TCP/IP of the future, we don't need all the power to end up in the hands of the ISPs and big websites. By distributing VTHO based on VET holdings, and VET holdings equating to distributed payments (or just currency in general), able to be traded for a number of things in the future. It ultimately means that power can still be in the hands of the end user and not just the application owner. VTHO is a mandatory item.Assume the blockchains capacity is 100% and people need 100% of the VTHO on the market. By holding just 1 VET, your VTHO generated offers you the ability to have some fractional ability to pioneer the future of the ecosystem. You can theoretically decide where that VTHO goes (I will only sell to Apple not Microsoft, or I will give to charity instead of Pornhub, etc.) and therefor you can help dictate what services provide value, demand space, and worth your dime. **So what matters?** Well, your VET matters. If you the people, control the majority of the VET supply, and VeChain becomes the TCP/IP of the future, you could bully Comcast into being compliant with what you want. Now extend this to all industries and all markets. The people truly hold the power. Now the above example isn't 100% practical, but its good to know that VeChain truly thought their way through just about everything in their model. Your VTHO is a daily representation of blockchain use, and your VET is a daily representation of potential blockchain capacity. Use it widely. With that you hold power. **What isn't VTHO?** ROI of VET. In no way shape or form is VTHO ROI of VET and neither are the economic/ x nodes. VETs ROI is based on the amount it grows. The economic and X node models distribute MORE power to the early investors, who are largely (in terms of population) every day people. By giving you, the people, more distributed VTHO, you now hold more power. You do not hold more ROI, thats exclusive to VETs appreciation.
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