Updated: August 2020
VeChain staking is becoming increasingly popular although we have noticed that the annualized staking yields have been gradually declining since the beginning of the year. That’s the trend we have been seeing on Binance exchange for the time being at least. Will the declining trend in VeChain annualized staking yields eventually reverse?
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This page is broken down into various sections to provide you with a general overview that may help you determine whether VeChain staking is right for you.
What is VeChain?
VeChain is a blockchain platform offering blockchain-as-a-service to enterprises, allowing businesses to easily interact and transact with each other in a frictionless and transparent environment without the need of a middle man or third party to promote trust.
On its website, VeChain describes itself as “the public blockchain that derives its value from activities created by members within the ecosystem solving real work economic problems.”
VeChain is focusing on resolving real-life economic issues that businesses face around data management (such as data authenticity management) and supply chain management (such as product quality control, identifying counterfeit goods source tracking, adherence to safety compliance standards, etc..).
The platform is composed of (a) VeChain network (VeChainThor), which is responsible for implementing its native Proof-of-Authority consensus protocol, and (b) its dual token system comprising of both VeThor (VTHO) and VeChain (VET) tokens.
The two-token system is essential for the VeChainThor network to function properly. VeThor (VTHO) is distributed by holding Vechain (VET) in your wallet or running a VET Masternode. This system helps segregate the cost of using blockchain from market speculation.
Where to Buy VeChain?
As mentioned above, you could earn VeThor (VTHO) by either running a VET Masternode or staking your VET in a wallet.
The easiest way to stake VeChain is probably through a reputable crypto wallet or exchange such as Binance.
Binance supports the distribution of VeThor Tokens (VTHO) to holders of Vechain (VET) and distributes VeThor tokens to its users on a monthly basis.
How to Buy VeChain?
After you have found a wallet or an exchange that supports VeChain staking, you will then need to first purchase Bitcoin (BTC) and then convert your BTC to VET.
If you are planning to stake cryptocurrency, you will be taking on exposure risk (since you will be holding the underlying digital asset for a period of time.)
To learn more about the risks associated with staking read our free staking guide.
Before you stake any coin, it good to get into the habit of checking the basic price and volume trends. We are tracking the basics for you in the table below.
*The dates represent the end of the month of every quarter.
**The quarterly volume data is based on the summation of the daily volumes for every quarter.
*** Price and volume data in the table have been sourced from Coinmarketcap.
VeChain Staking Rewards
The estimated annual staking reward (or yield) for staking VeChain on Binance ranges between 3% – 5%, which is a good yield for staking coins. However, be aware that the trend in annualized staking yields seems to have been decreasing since the beginning of the year.
We also note that the 9.10% annualized staking yield seen at the beginning of the reporting period appears to have been an outlier. On most occasions, the monthly annualized staking yield achieved on VeChain staking through Binance is somewhere between 1.11% – 3.2% (not 3% – 5%).
According to the historical yield breakdown on Binance, the annualized staking yield for the month of March (distributed 2nd April) was 0%!
VeChain Staking Charges
If you’re staking VeChain (VET) through Binance, there are currently no charges. See our staking page to see how staking on Binance compares with other popular cryptocurrency exchanges and wallets.
To see what the estimated annual staking yield could look like next month, the following calculator has been developed, using the VTHO generation rate.
At the time of writing, every VET creates 0.00000005 VTHO with each block that is created. A new block is added to the blockchain every 10 seconds, which translates to a generation rate of 0.000432 VTHO per VET per day. This means a user who is holding 10,000 VET in their wallet stands to earn 4.32 VeThor a day.
The current default VTHO generation rate of 0.000432 may increase over time but only if all stakeholders on the blockchain take a vote. As a general rule, it is understood that the VTHO generation rate cannot decrease (but only increase) over time.
This calculator provides an indicative result based on the inputs that you provide. Do not make any purchase decisions based on this calculator. Doing so will be entirely at your own risk.
Compare VeChain staking rewards. Visit CoinMarketExpert’s staking page to compare the best staking rewards offered by various coins and their providers.