The VeChain Foundation has been pushing forward relentlessly with its mission of bringing blockchain technology to mass adoption, creating real value for businesses and helping make the world a better place by enabling sustainability goals. During our earlier days, discussions with business partners, especially corporate and enterprise business owners, showed us first-hand the importance of predictable costs for day-to-day business operations.
Stable Costs Facilitate Business Confidence
Following these consultations, we specifically designed our unique two-token model to ensure we could provide predictable transaction costs for users of the VeChainThor blockchain. As explained in our whitepaper, VET, the native token, generates VTHO, and acts as the store of value and value-transfer medium for the ecosystem. VTHO, the secondary token, is used to pay the gas fees of transactions on the network. By holding VET, they are able to use the network for free and sell excess VTHO for other users to purchase.
Reflecting on our business foundations, we recognise the potential effects that increased costs can bring and acknowledge the need to keep costs affordable to use the network. For example, on January 1, 2021, it cost $0.291 to initiate an NFT auction on the VeChainThor blockchain. Today, at the time of writing, that same transaction costs around $7.009. Aside from startups, increased transaction costs would also affect current and future business, enterprise and government users. Such increases in transaction costs can slow down the large-scale adoption of products and services.
To ensure projects and businesses are able to benefit from VeChainThor unhindered and keep solving real-world problems, we launched the VeChainThor Supercharger program, sponsoring dApps for up to 3M VTHO, offsetting costs for users of the fee delegation protocol.
With more significant enterprise and government level applications in development, it is clear that the utilization of VeChainThor is only going to increase and therefore, so will demand for VTHO. To ensure that this growth can happen, the VeChain Foundation believes that we should continue as planned to provide a stable and cost-efficient blockchain environment for governments, enterprises, builders and users.
Steps To Ensure Continued Blockchain Adoption
With consideration for the long term health and viability of the VeChain ecosystem and keeping feedback from businesses, builders and the community in mind, the VeChain Foundation will submit a proposal to the Steering Committee about the implementation of a measure to reduce the base gas price of the network. This will lower the fee to use the network and bring costs in line with targets. The base gas price is a parameter that we can adjust, as outlined in the whitepaper.
To make this process as transparent and inclusive as possible, we want to hear your thoughts. As such, the VeChain Foundation hereby announces an All-Stakeholder Voting event to be held on the VeVote platform to gather input from the community. Authority Masternodes, X-Nodes and Economic Nodes holders can now visit the VeVote platform and make your input heard! The two most favoured choices will be submitted to the Steering Committee for final decision.
From March 30, 2021, at 10pm (UTC+8) to April 6, 2021, at 10pm (UTC+8)
Authority Masternodes (40%), Economic X Nodes (40%), Economic Nodes (20%)
- Leave the base gas price as is (1e15 wei)
- Reduce the base gas price to 2e14 wei (20% of current gas price)
- Reduce the base gas price to 5e13 wei (5% of current gas price)
- Reduce the base gas price to 1e13 wei (1% of current gas price)
The reduction of transaction cost will last a period of time according to some rationale (time & project feedback & business needs), which is to be decided by the observation of market fluctuation.
To ensure the future of the network, it is vital that usage costs remain both affordable and viable for large scale usage. The ability to manage transaction costs is a unique trait of the VeChainThor Blockchain and demonstrates, once again, why VeChain remains the most only feasible public blockchain for mass adoption. With this action, VeChainThor is able to maintain its competitive advantage and attractiveness for enterprises, business owners, developers and users alike. We look forward to hearing your thoughts!