VeChain (VEN), the digital asset that aims to secure global shipping and order tracking, is changing its profile. Users noticed an exodus of coins from exchanges, with one possible explanation the decision to use the coins for staking nodes.
This Ethereum wallet address, belonging to the Binance exchange, shows that the withdrawals continued for a few days ahead of a March 20 deadline to lock coins in a node. Luckily, Binance is one of the exchanges with no withdrawal problems. The fee for withdrawing is 2.0 VEN.
VEN market prices grew by another 2.8% overnight, reaching $4.18 on Wednesday. This is still far from the peaks around $9, and there may be days when VEN suffers from the lowered volumes. Yet locking up coins in staking nodes would serve do decrease supply and potentially raise prices.
The VeChain Thor Node System
The reason funds are pulled into wallets just now is that the X Nodes program requires a balance of VEN/VET tokens before March 20.The minimum to run a starter node, also known as VeThor X Node, is 6,000 VEN/VET tokens.
The VeChain node system may create some confusion. Firstly, after the recent rebranding, the VeChain digital asset was supposed to have a new ticker, VET. For now, the token still trades as VEN in its Ethereum-based version, which will continue until the launch of the main net in June.
So for now, some Binance traders may be redirecting VEN tokens to their Ethereum MyEtherWallet addresses, although the main net is still months away.
The minimum requirement to stake coins for a node was 10,000 VEN/VET coins, paying out a reward of 40 Thor tokens (VTHO). Owners of the native VET token can stake up to 250,000 coins. The owners of those nodes must pass a KYC process.
Rewards can be easily tested with an online calculator. Staking the coins will also have a minimum locking period after which the VTHO tokens would start to be accrued.
VeChain is also entering the stage at which third parties are starting to use the system for the building of distributed apps:
Introducing My Story, the first ever third-party initiated, developed and managed decentralized application (dApp) for VeChainThor by DNV GL.https://t.co/AxNqkNzTZ9
There has also been talk of VEN partnering with the Oxford University, to explore the potential for tracking and internet of things solutions. But the partnership needs to be announced officially by the university first.
Additionally, VeChain plans to expand its team with 100 new developers by the end of the year, and is starting its in-house VeResearch initiative.