Key Takeaways:
- VeChain launches dynamic VTHO supply model in December 2025.
- Consensus shifts from PoA to DPoS with a seven-day VTHO pause for transition.
- November sees 20% price rise, but low trading volumes signal cautious sentiment.
- Upgrades aim to enhance network efficiency, fairness, and decentralization.
VeChain Prepares for Major December Upgrade
VeChain is making waves this November with a significant protocol upgrade aimed at enhancing fairness, decentralization, and network efficiency. Starting December 2025, the blockchain will implement a dynamic VTHO supply model linked directly to VET staking. This new system replaces the fixed VTHO issuance model, providing a more flexible and equitable rewards structure for network participants.
Alongside this, VeChain is transitioning its consensus mechanism from Proof of Authority (PoA) to Delegated Proof of Stake (DPoS). The testnet migration completed successfully in November, with mainnet activation scheduled for December 2, 2025. During the first seven days of the transition, VTHO generation will be paused to allow the network to adapt smoothly.
Market Trends Show Cautious Optimism
Despite a notable 20% price increase in early November, VeChain’s market activity remains subdued. Trading volumes and open interest have largely stagnated, reflecting investor caution. Historically, November has been a strong month for VET, yet this year traders appear hesitant to commit fresh capital, keeping derivatives activity low and market conviction fragile.
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Analysts are closely monitoring key support and resistance levels as VeChain navigates these changes. While the price surge indicates potential recovery, overall market sentiment remains tentative amid the ongoing upgrade.
VeChain Strategic Upgrade and Future Outlook
The introduction of a dynamic VTHO supply tied to staking, combined with the shift to DPoS, positions VeChain to improve reward alignment and network efficiency. These upgrades could make the blockchain more attractive to institutional investors and long-term holders. However, cautious trading patterns suggest that the market may need time to fully embrace these changes.
Also Read: VeChain’s Hayabusa DPoS Testnet: The Upgrade That Could Change Everything
With its strategic updates, VeChain is positioning itself for stronger long-term growth, even as short-term market sentiment remains careful. Investors should watch early December closely for mainnet activation and post-upgrade market responses.
