VeChain has launched its Renaissance update, a major overhaul aimed at increasing decentralization, improving network participation, and redefining tokenomics. The new staking system requires users to actively stake VET to earn rewards, replacing the previous passive VTHO generation model.

A key feature of this upgrade is the introduction of staking NFTs, which offer different levels of commitment and reward multipliers. Validators can earn up to 20% APY, while node delegates may receive up to 12.8%, depending on participation levels.

To improve accessibility, VeChain has introduced new economic node tiers with lower entry barriers, starting from 10,000 VET. Additionally, an Early Bird Staking program will launch in July 2025, distributing 3 billion VTHO in incentives ahead of the Hayabusa upgrade in December.

The Renaissance update also includes economic reforms, such as burning 100% of base transaction fees and reducing VTHO inflation by 72.2%, aiming to create a more balanced and sustainable ecosystem.