VeChain (VET) is the native token of VeChainThor, VeChain's own Layer-1 blockchain, which is EVM-compatible at the execution level but is not an Ethereum layer-2 or another chain's token standard. VET originally launched in August 2017 as VEN, an ERC-20 token on Ethereum, before VEN holders swapped 1:100 into native VET when the VeChainThor mainnet launched in June 2018; the legacy VEN Ethereum contract is now deprecated and inactive.
VeChainThor was built around enterprise and supply-chain traceability applications. The VeChain Foundation stewards ongoing development of the network as of 2026-08-31.
VeChain differentiates itself from many general-purpose smart-contract platforms by targeting enterprise supply-chain traceability and business-to-business applications rather than open retail DeFi. As of 2026-08-31, on-chain DeFi activity on VeChainThor remains limited, with total value locked of roughly $1.6 million against a VET market capitalization near $595.9 million, underscoring the network's enterprise rather than DeFi-driven positioning.
The ongoing "Renaissance" upgrade program, including the StarGate staking system, restructures validator and delegator incentives directly around VET.
VET functions primarily as a utility and staking token on VeChainThor rather than a formal governance token with on-chain voting. Holders can lock VET as collateral through the StarGate staking system, launched July 1, 2025, which converts holdings into transferable, NFT-based staking positions used for both collateral and delegation.
Stakers act as validators or delegate to validators; block rewards are split 30% to validators and 70% to delegators, with weight multipliers favoring validator self-stake and legacy X-Node collateral.
With circulating supply already near the fixed cap, VET's net token emission is effectively non-inflationary going forward.
VeChain launched its original token sale as VEN, an ERC-20 token on Ethereum, running from roughly August 17 to September 17, 2017, and raised approximately $20 million. The sale reportedly distributed 1 billion VEN tokens, with about 41% sold in the public crowdsale and roughly 9% sold in a related private sale.
Fenbushi Capital, founded by Bo Shen, was an early backer connected to co-founder Sunny Lu. VEN converted 1:100 into native VET at the VeChainThor mainnet launch in June 2018 — nearly a year after the token sale and roughly three years after VeChain's 2015 founding.
VET is native to VeChainThor, VeChain's own Layer-1 blockchain, which is EVM-compatible at the execution level but is not an Ethereum layer-2. VeChainThor has historically run on a Proof of Authority consensus model secured by a fixed set of 101 Authority Masternodes.
Under the ongoing "Renaissance" upgrade program, these Authority Masternodes are being restructured into "Validators" within the StarGate staking system; the validator cap remains 101 at launch of the new model, though VeChain's own roadmap describes this as subject to change in later phases.
VeChain was co-founded in 2015 by Sunny Lu (CEO) and Jay Zhang (Founder/CFO). Sunny Lu previously served as an enterprise IT leader and Chief Information Officer of Louis Vuitton China; Jay Zhang previously worked in finance and risk management at PwC China and Deloitte UK.
Sunny Lu is reported to have connected with Ethereum founder Vitalik Buterin in late 2015 through Bo Shen of Fenbushi Capital, an early VeChain backer. Other named VeChain Foundation personnel include General Counsel Scott Brisbin (since 2016), Dimitrios Neocleous, Jerome Grilleres, and Jason Rockwood.
The VeChain Foundation is the organization that stewards and develops VeChain today. It originally launched the project's 2017 token sale as VEN, an Ethereum-based ERC-20 token, before migrating the network to its own VeChainThor mainnet in June 2018 under the VET token.
VeChainThor has historically been governed through a fixed set of 101 Authority Masternodes rather than open on-chain token-holder voting. The "Renaissance" upgrade program is restructuring this model into StarGate-based staking, launched July 1, 2025 with a bootstrapping phase through December 31, 2025, converting existing Economic Node and X-Node holdings into transferable, NFT-based staking positions that grant both staking collateral and delegation rights.
VeChain's multi-phase "Renaissance" upgrade program continued through 2025-2026. StarGate staking launched July 1, 2025, with the VeChain Foundation committing 5.48 billion VTHO (approximately $15 million) as a six-month early-participation reward boost; the "Galactica" upgrade activated dynamic fees, and a "Hayabusa" phase targeted a validator-delegator staking testnet in September 2025.
An "Interstellar" upgrade (VIP-255), adding EVM Cancun compatibility and JSON-RPC support, was reported scheduled around September 16, 2026. Other announced initiatives include a Wanchain bridge integration for cross-chain VET transfers and an "AgentSuite" AI-agent strategy from VeChain's "2026 Manifesto."
VeChainThor's mainnet and wallet code were reportedly audited before the 2018 mainnet launch by Secureware, Hosho, and HackenProof, and SlowMist published a mainnet/mobile-wallet audit dated December 4, 2018. The newer StarGate staking contracts underwent two 2025 audits, by Hacken (October 2025) and Trail of Bits, alongside an Immunefi bug bounty program.
Address-level concentration is notable: the top 10 VET addresses hold roughly 45% of supply and the top 100 hold about 64.6%, though the largest holders — including Binance cold and warm wallets — are exchange addresses pooling many customers' balances rather than individual holders.