VeChain has entered a new phase in its multi-year development roadmap with the launch of the Hayabusa upgrade and Stargate 2.0. The network calls this a transition to 'true decentralization.'

In the BeInCrypto podcast, Jake Campton, Head of Communications & Social Media at VeChain, explained the changes of Hayabusa, why this change is important, and what VET holders need to do next to align with the new staking model and receive rewards.

Hayabusa marks the transition to true decentralization

Before Hayabusa, VeChain operated under a Proof-of-Authority (PoA) model, where validators had to be licensed and undergo identity verification (KYC). According to Campton, this model was suitable for the early years of VeChain, when business partners required validators to have clear identities and comply with legal regulations.

However, the context has changed.

With Hayabusa, VeChain has transitioned to a Delegated Proof-of-Stake (DPoS) model. Now, validators are public and permissionless; anyone meeting the collateral and hardware requirements can register to participate.

“Hayabusa is the first time that delegators truly impact the security of the network,” Campton shared. “The network has transitioned from a permissioned state to a public system, unrestricted to participants.”

Registration to become a validator is managed through Stargate, where candidates can join the waiting list to take turns when there are validator openings.

VeWorld and Stargate: How users participate

For ordinary users, VeChain makes participation simple through VeWorld – the all-in-one wallet and ecosystem application of VeChain.

Through VeWorld, you can:

  • Managing VET and other digital assets

  • Access to VeChain's dApps and VeBetter

  • Staking VET through Stargate without complex technical operations

“VeWorld is the center of all activities on VeChain,” Campton explained. “If you want to participate in Hayabusa and the new staking model, just download VeWorld and you can start very easily.”

VTHO inflation decreases as rewards shift to active stakers

One of the biggest changes of Hayabusa is the important update on VeChain's tokenomics.

VeChain has reduced VTHO inflation by about 50%, meaning the rate of gas token creation by the network has slowed. As transaction volume continues to rise, this helps balance the supply and demand of VTHO.

At the same time, rewards are now focused on active participants.

Previously, each VET token automatically generated VTHO. Now, only staked VET receives rewards, and these rewards are distributed to a much smaller group of participants.

“We have pooled the rewards into a certain amount of node tokens,” Campton said. “Everyone will receive much higher rewards, but only if you actively participate.”

In summary: No more just holding tokens and benefiting as before.

What should VET holders do at this time

For retail investors holding VET, the message from VeChain is very clear:

  • Download VeWorld

  • Staking VET through Stargate

  • Choose validators carefully, as the delegator's current decision directly affects network security as well as the rewards received

Hayabusa changes how value flows within the VeChain ecosystem. If you participate actively, you will benefit from higher concentrated rewards along with a more sustainable economic model. If not, you may easily miss the opportunity.

As Campton said, Hayabusa 'is a big win for VET holders,' but only for those who participate actively.