$0.00558 -2.15%
VET · 31w

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 dynami...
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