In this post I will be covering what is Vechain project, what are it’s VET and VTHO coins and how you can easily stake it on Atomic wallet.
What Exactly is Vechain?
Vechain is a blockchain project aimed at decentralizing the supply chain operations and it can be extended to managing interactions between different groups across blockchains. It was founded by Sunny Lu in 2015. He is ex-CIO of Luis Vuitton’ China division. He has a lot of experience in managing supply chains.
What are VET and VTHO?
VET is VeChain Token which is the main monetary currency and VTHO is VeThor which is used to power all transactions in the VeChain blockchain. This structure is similar to NEO and GAS. It is also comparable to when we transact a ERC20 token we need to burn ETH for the transactions.
VET employs proof of staking and for holding VET tokens you are rewarded in VTHO tokens which you can use to power your transactions, exchange for VET or sell on Binance.
VET has a limit on supply with the maximum circulation possible of 86 billion of which 64 billion are already in circulation. VTHO has no limit on supply and it will continue to be generated as long as VET tokens are staked.
Why is VET price pumping so fast during the last couple of weeks?
VeChain already has collaboration links with several large corporations like PWC and Deloitte. Recently it finalized a deal with Nike to verify their supply chains for the new models they are going to launch including Air Max 1. There are several other collaborations with large corporates on the card which has made people extremely bullish on VET causing it to double it’s price over the last couple of weeks.
Why am I Bullish on VeChain?
I think VeChain is a genuine project and I see long term value in holding it’s coins. One factor in my opinion which differentiates it from all other crypto projects is it’s unique niche. Most coins have several competitors eg Litecoin and Zcash were launched claiming to be improved version of Bitcoin. Cardano and Neo are claiming to be superior to Ethereum.
VeChain is a unique player and has no direct competitor in the top 200 coins by market cap. Additionally it has a use case to control supply chains which has a lot of practical value add for most of the product based companies. I am planning to add VeChain in my portfolio to add a layer of diversification.
Is it the right time to buy VET?
As the market has pumped so fast during the last few weeks, I personally think it’s better to wait for a correction before making a buy decision. However if you have been following DCA (dollar cost averaging) and have already been buying VET then there is no harm in continuing. If you are looking for a fresh entry it’s more prudent to wait a while.
How do I stake it on Atomic Wallet?
As soon as you transfer your VET tokens to Atomic wallet they will start earning daily rewards in VTHO tokens. Your VET will not get locked and you can move them any time you need to. The payout rate is between 1.5 to 2.0% and depends on the fluctuating rate of VTHO which is not always correlated to the price movement of VET token. If VTHO price goes up then your stake reward value goes up but it makes transactions on VeChain blockchain costlier driving down the adoption. On the other hand if VTHO gets cheaper then transactiosn go up but your staking rewards are reduced.
Isn’t 1.6% Staking reward too low?
Compared to other popular staking options like Tezos, Algorand and Komodo which offer 5-6% staking rewards the Vechain dividend payout is lower but I still plan to include it in my portfolio as I like the project and was planning to hold it long term irrespective of staking benefits. Any staking rewards I get in VTHO is an added advantage.
If the embedded video does not work, please try this link - https://lbry.tv/@Crypto_Sense:1/Staking-Vechain-on-Atomic:c
If you liked this article please check out the previous article I wrote about staking Komodo and Algorand on Atomic wallet
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