VeChain Renaissance Kicks Off – Staking NFTs to Power Superior Rewards

• The upgrade in Vechain staking aims to increase decentralization, boost network engagement, and enhance tokenomics by requiring users to stake VET for rewards.
• The new staking system features weighted tiers and additional economic node options, enabling broader participation.

VeChain has officially rolled out its Renaissance project, a major shift in its blockchain environment. The new upgrade, after the Galactica vote, brings a new staking system that shifts away from passive rewards. This reorganization is designed to enhance network engagement through an NFT-based staking model while redefining VeChainThor’s tokenomics.

VeChain’s New Staking System: More Rewards for Active Participants

Within the Renaissance paradigm, VeChain removes the auto-generating of VTHO from VET holdings. Users are instead required to actively stake their VET in order to receive rewards, making the network more decentralized and secure. The implementation of Staking NFTs is a key component in this change, enabling participants to lock up the network while reaping the rewards of a more dynamic reward system. This development comes as the blockchain network attained some major milestones last month in February, as highlighted in our previous article.  

The staking system brings into the picture Delegator NFTs that denote various shades of VET commitment. The 70% of block rewards will go to Delegators, while the Validators, the producers of the blocks, will be rewarded 30% of rewards and 100% of priority fees accumulated from network transactional activity. The new design should balance out the incentives to motivate wider involvement in the ecosystem.

However, governance is also changing in VeChain. As reported earlier, the network now has a weighted staking mechanism, where tiers of staking determine the chances of receiving rewards.

• Validators have a 2.0x effective staking weight and get the most earning possibility.
• X-Node Delegators enjoy a 1.5x staking weight, which gives them an edge over ordinary economic nodes.
• Economic Node Delegators have a 1.0x staking weight, and their participation remains equal.

Forecasts predict Delegators may earn as much as 12.8% APY at first, with Validators earning around 20% APY. However, it’s important to note that rates will vary depending on network engagement.

Increased Node Tiers & Entry Points

In order to provide more access to staking, VeChain is adding three new economic node tiers, which dramatically reduce the entry point:

• Dawn Node (10,000 VET) – A minimum staking level with a 1.0x reward multiplier.
• Lightning Node (50,000 VET) – A middle-of-the-road option with a 1.15x multiplier.
• Flash Node (200,000 VET) – A high-end 1.3x reward multiplier.

These new options join higher-level nodes like Mjolnir, Thunder, and Strength, which provide increasingly higher reward multipliers.

Early Bird Staking Incentives

According to an article on X, VeChain is introducing an Early Bird Staking Program on July 1, 2025, with a 3 billion VTHO distribution (approx. $10 million). The program compensates early stakers with reward incentives prior to the upcoming Hayabusa upgrade in December 2025.

https://t.co/k9iW5hDYfY

— VeChain (@vechainofficial) March 5, 2025

The Renaissance upgrade goals redefine VeChain’s economic model by burning 100% of the base transaction fees and lowering VTHO inflation to 27.8% of what it was. The upgrades intended to strike a balance between supply and demand. This makes tokens scarcer while guaranteeing sustainable rewards for active users.