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What is VET? Vechain Explained

What is VET? Vechain Explained

KEYTAKEAWAYS

  • Vechain’s dual-token model enables enterprise-grade blockchain applications and scalable smart contract deployment.

     

  • VET not only powers transactions but also grants governance rights and generates VTHO for network utility.

     

  • With strong partnerships and adoption in China, Vechain has strategic positioning for long-term growth.

CONTENT

Vechain is a Layer 1 blockchain offering enterprise solutions with dual-token utility. Explore VET’s use cases, partnerships, and future investment potential.


WHAT IS VECHAIN?

 

Vechain is a blockchain platform launched in 2015, designed to provide enterprise-grade solutions. It later developed its own Layer 1 blockchain called VeChainThor, which is EVM-compatible and supports smart contract functionality. As a robust infrastructure for global businesses, Vechain has been adopted across multiple industries including supply chain, sustainability programs, carbon emissions management, automotive, pharmaceuticals, and energy. Notable partners in the past include Walmart, Bayer, and the BMW Group.

 

The platform is backed by BitSE, a Blockchain-as-a-Service (BaaS) company based in Shanghai. BitSE aims to build a distributed business ecosystem that leverages blockchain technology for both small and large enterprises. The architecture is built with flexibility and scalability in mind, allowing for real-world commercial applications at various business levels.

 

VECHAIN.com

 

📌 Vechain’s Core Mission and Applications

 

Vechain is primarily focused on solving supply chain issues and simplifying enterprise-level information management. At the heart of this mission are smart chips, which are used to track every critical touchpoint in the supply chain. These chips are linked to a distributed ledger, providing an immutable, secure, and transparent record.

 

A great example of this is Vechain’s collaboration with Renault, where they created a tamper-proof digital maintenance book for vehicles, ensuring that sensitive repair data is securely recorded and verifiable.

 

Beyond supply chain, Vechain also aims to be a leading platform for decentralized applications (DApps), Initial Coin Offerings (ICOs), and serves as a middleware for Internet of Things (IoT) devices—building the foundation for a connected and decentralized business world.


📌 Vechain’s Dual-Token Model: VET and VTHO

 

Unlike many other blockchain projects, Vechain operates on a dual-token system:

 

  • VET is the primary token used for value transfer and payments within the Vechain ecosystem. Originally launched as an ERC-20 token under the symbol VEN, it was swapped to VET at a 1:100 ratio when the VeChainThor mainnet launched in 2018. VET experienced a massive price surge in late 2020, rising over 100x, and although its price has retraced during the ongoing bear market, it still trades at a significant multiple over its original token sale price.

 

  • VeThor Energy (VTHO), commonly referred to as VeThor, powers the entire blockchain infrastructure. It represents the energy required to process transactions and execute smart contracts on the network. VTHO is consumed during network activity, creating a gas system that helps stabilize transaction costs and network usage.

 

>>> More to read: What is Cronos(CRO)?


WHAT IS VET TOKEN? WHAT IS IT USED FOR?

 

 

 

VET is the primary utility token within the Vechain ecosystem. Here’s how it functions:

 

Utility & Functionality


VET can be held, spent, transferred, or staked within the Vechain network. It plays a central role in enabling various blockchain activities.

 

Drives VTHO Generation


Applications on Vechain require VTHO (VeThor Energy) to pay for transactions. As usage grows, demand for VTHO increases, which could lead to higher demand for VET, since holding VET generates VTHO.

 

Staking & Governance


VET holders can stake their tokens to participate in governance. They have the power to vote on proposed network changes, such as modifying VTHO generation rates or other protocol-level decisions.

 

Limited Supply


The total supply of VET is capped at 86.7 billion tokens, making it a finite asset within the Vechain ecosystem.

 

VET not only fuels transactions and applications but also gives its holders a say in how the network evolves—positioning it as a foundational element of Vechain’s blockchain infrastructure.

 

>>> More to read: What is HODL? | A Long-Term Holding Strategy


IS VET A GOOD INVESTMENT?

 

Vechain’s native token, VET, offers more than just utility—it also shows long-term potential. Here’s why:

 

1. Massive Market Opportunity

 

Vechain targets the global supply chain industry, currently valued at over $15.8 billion and projected to double by 2026.


With increasing complexity in logistics, more companies may adopt Vechain to solve real-world inefficiencies. Existing partnerships with PwC, Walmart China, Renault, and government-backed institutions show strong enterprise traction.


2. Strong China Connection

 

China is a key blockchain market that’s tough for outsiders to enter. Vechain, however, has deep local roots:

 

  • Office in Shanghai

  • Backed by Chinese VC FutureCap

  • CEO Sunny Lu is Chinese

  • Partnerships with Chinese government-linked organizations
    These ties could provide a strategic edge in regional expansion and policy alignment.


3. Developer Adoption

 

Vechain supports smart contracts, and its ecosystem is growing. Developers are building a wide range of public-facing dApps, signaling increasing adoption and utility.


4. Solid Backing & Visibility

 

Backed by top crypto VCs, Vechain has enjoyed market attention since its early days. Its strong capital foundation and top-tier market cap underscore its credibility and staying power.

 

✅ Conclusion

 

Vechain stands out as a blockchain project with real-world utility, solid enterprise partnerships, and a unique dual-token model. Its focus on solving complex supply chain and business challenges gives it a clear value proposition beyond speculation. With growing developer interest, strong institutional backing, and a strategic presence in Asia—especially China—Vechain and the VET token are well-positioned for continued relevance in the blockchain space. For investors and builders alike, it’s a project worth watching.

 

>>> More to read: What is Binance Launchpool? Earn Free Token


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CoinRank is not a certified investment, legal, or tax advisor, nor is it a broker or dealer. All content, including opinions and analyses, is based on independent research and experiences of our team, intended for educational purposes only. It should not be considered as solicitation or recommendation for any investment decisions. We encourage you to conduct your own research prior to investing.

 

We strive for accuracy in our content, but occasional errors may occur. Importantly, our information should not be seen as licensed financial advice or a substitute for consultation with certified professionals. CoinRank does not endorse specific financial products or strategies.


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