VeChain (VET), a Singapore-based enterprise blockchain platform for financial services and supply chain management, has introduced a new tokenization system for its VeChainThor Nodes that allows for greater economic flexibility.
Introducing VeChainThor Node tokenization! In the VeChainThor Mobile Wallet 1.3.0 update you will find that node management is decentralized and options to trade/transfer tokenized Nodes in the Node Exchange Market are added. Update will go live Dec 5th.https://t.co/tsMffK9vSb
— VeChain Foundation (@vechainofficial) December 4, 2018
According to the announcement, VeChainThor nodes can now be represented by non-fungible VIP-181 tokens, allowing node holders to easily maintain and transfer their nodes between addresses, in addition to simpler integration of these nodes into third-party applications.
Ultimately, by tokenizing network nodes, VeChain is creating a system where nodes can be easily exchanged between users and smaller-scale investors can participate in the network through partial node ownership. This further democratizes access and promotes decentralization for better distribution of VeThor (VTHO) rewards.
With the node upgrade, VeChain is foregoing the traditional weekly scripted VTHO distribution, and will instead pay out rewards via a smart contract that enables node holders to cash out whenever they would like. However, cashing out will charge a flat fee of 40 VTHO to pay for the network transaction.
It’s clear that this system upgrade is a big push towards improving network liquidity, and VeChain is even supporting two types of public auctions: fixed price and Dutch auction. This is completely peer-to-peer and is facilitated by smart contracts, further distancing VeChain from its node ecosystem.
Despite continued development, VeChain’s price has suffered with the rest of the crypto market. Currently, VET is trading for $0.004674 with a $262.27 million market cap, making it the 24th largest cryptocurrency.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.