VeThor (VTHO) is the utility token of the VeChainThor blockchain, primarily used for paying transaction fees and powering smart contracts on the VeChain network. It is one of two tokens within the VeChain ecosystem, alongside VeChain (VET), and plays a crucial role in the operation and governance of the network.
VeThor is earned by holding VeChain (VET) tokens, which act as staking tokens. When users hold VET, they accumulate VeThor tokens as rewards, much like how other blockchain networks reward staking participants with native tokens. This staking process helps secure the network and validates transactions.
The primary function of VTHO is to serve as the fuel for transactions on the VeChainThor blockchain, much like how gas works on the Ethereum network. Every action on the VeChain blockchain, such as executing a smart contract or transferring assets, requires VTHO to pay for the computational cost. This ensures that the network remains efficient and incentivizes users to participate in the ecosystem.
Additionally, VeThor tokens play a role in the VeChain governance model, enabling users to participate in decision-making processes related to protocol updates and network changes. The supply of VTHO is managed through a burn mechanism, which helps prevent inflation and ensures the stability of the token's value.
