Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche


What Value does the VeThor Token (VTHO) have?

Mr. Market loves the VeThor Token (VTHO). For example, CoinMarketCap named VeThor the most trending cryptocurrency on 20 February 2022.

Similarly, CoinMarketCap gave VeThor a Market Capitalization of $146.193 million, a Fully Diluted Market Cap of $145.717 million, a 24-Hour Market Volume of $10.671 million, and a Coin Price of $0.003203 on 22 February 2022. They based those numbers on a Circulating Supply of 45.63 billion VTHO. VeThor was CoinMarketCap’s 290th largest cryptocurrency on 22 February 2022.  

VeThor is an inflationary token with a 45.63 billion VTHO on 22 February 2022. To explain, demand drives an inflationary token’s supply and value. They create more tokens when demand increases. VeThor (VTHO) is one of two tokens that govern the VeChainThor Ecosystem. The other is the VeChain (VE) token. 

What is VeThor?

So what is VeThor (VTHO) and is it worth $146.193 million? VeThor (VTHO) is one of two tokens that govern the VeChainThor blockchain Ecosystem. The other is the VeChain (VE) token. They call VeChainThor a public blockchain that derives value from members’ activities and transactions.

For example, VeChainThor offers meta-transactions including multi-party payments, multi-task transactions, free delegation, a controllable transaction life cycle, and transaction dependency. For instance, controllable transaction life cycle allows to users to schedule when the platform processes a transaction. Hence, a user can delay payment until he is sure there is money in his account.

They built VeChainThor upon existing blockchain innovations and novel technologies. The hope is that VeChainThor will drive the mass adoption of blockchain technologies. VeChainThor technologies include Proof of Authority (POA) consensus algorithm, meta-transaction features, protocols of transaction fee delegation, on-chain governance mechanisms, built-in smart contracts, and tools for developers.

Free delegation allows VeThor users to create flexible transaction fees and implement freemium models for blockchain solutions. Transaction dependency allows users to create flexible fee delegation schemes, multiparty payment schemes, designated Gas Payer schemes, and enable Freemium models in decentralized applications (DApps) with less friction.

Multitask Transaction (MTT) or multifunction atomic transactions allow developers to create batch payments, and build multiple contract functions into transaction, and determine the sequence of transactions. For example, MTT lets users build rebates and discounts into transactions.

The VeChainThor Ecosystem

They build the VeChainThor ecosystem with Authority Masternode Operators who provide Proof of Authority. The Masternode Operators maintain the VeThor Protocol and govern the VeChainThor ecosystem.

The VeChain Foundation strictly verifies and identifies all Authority Masternode Operators. The VeChain Foundaiton is the organization that is building the VeChainThor Ecosystem.

They claim the VeChainThor ecosystem can run with low computation power. Control apps with built in smart contracts. Avoid hard forks and adapt if masternodes cannot upgrade.

The VeChainThor Masternodes include Academic Research Partners, Enterprise Users (governments and corporations), Blockchain Developers, Business Partners, and Technical Partners.

The VeChainThor Stakeholders include the VeChain Foundation, Partners, Enterprise Users, Community Investors, Developers, Startups, Institutional Partners, and Research Partners. Some partners will be Authority Masternode Operators.

VeChain makes money by selling blockchain services to enterprise users. The VeChain platform rewards developers and startups with business leads, capital investment, incubation, and access to VeChain technology. VeChain will reward Institutional Partners with investment opportunities.

A Community elected Steering Committee will govern the VeChainThor ecosystem. They hope an on-chain governance mechanism will govern the Authority Masternodes.

A Unique Economic Model

They claim the VeChainThor Blockchain has a unique economic model that relies on a two-token system. The two tokens are VeThor (VTHO) and VeChain (VET).

VeChain (VET) was CoinMarketCap’s eighth-most trending cryptocurrency on 20 February 2022. Vet was CoinMarketCap’s 42nd largest cryptocurrency on 22 February 2022.

CoinMarketCap gave VET a 4.634₵ Coin Price, a $2.981 billion Market Capitalization, a $4.019 billion Fully Diluted Market Cap, and a $339.615 million 24-Hour Market Volume on 22 February 2022. They based those numbers on a Total Supply of 86.713 billion VET, and a Circulating Supply of 64.32 billion VET.

The hope is that having two tokens reduces the effect of speculation on the blockchain. Another hope is to reduce costs by making VTHO supply and demand easier to monitor. They also hope to reduce the governance costs.

They will destroy 70% of VTHO paid in any transaction in an effort to avoid inflation. They will reward the rest of the VTHO to Authority Masternode Operators. The Foundation can adjust variables to VTHO gas prices and velocity to maintain VTHO’s equilibrium demand and supply.

What Value Could VeChainThor Have?

I think the most valuable attribute of VeChainThor will be the built-in smart contracts. Building smart contracts into DApps will allow those apps to perform many more transactions. For example, they could build a VeChainThor DApp that makes payments in several stablecoins.

I think VeChainThor could offer immense value if they can adapt it for gaming or ecommerce. The built-in smart contracts could enable games to players with stablecoins or fiat currency, for example. In addition, DApps could offer automatic refunds or discounts to customers with built-in smart contracts.

Unfortunately, there is no evidence VeChainThor has deployed any of the built-in smart contracts. Hence, any value of VeThor could be theoretical.

The VeThor Token (VTHO) has some value. For example, Coinbase gave VeThor a Coin Price of $0.0032, a Market Cap of $145.9 million, and a 24-Hour Market Volume of $10.70 million on 22 February 2022. They based those numbers on a Circulating Supply of 45.6 billion VTHO. Coinbase estimates VeThor had an all time high of 4₵.

I consider VeThor a cryptocurrency to watch because of the claims the VeChain Foundation makes. If those claims come true, could some value. Until then speculators need to watch but not buy VeThor.