About VeChain (VET)

VeChain (VET) is the native digital currency for the VeChain enterprise blockchain focused on enterprise supply chain management and Internet of Things (IoT) solutions. Development of VeChain commenced in 2015 as a modified fork of Ethereum with a design focused on supply chain management. VeChain became a portfolio holding of PwC's incubator arm in 2017. 

VeChain offers a blockchain-based enterprise application called ToolChain. ToolChain offers services including product lifecycle management, supply chain process control, data deposit, data certification, and process certification. VeChain partners in China include BMW, Walmart, and CAFA – an organization overseen by PBOC’s Ministry of Agriculture which includes MacDonald's and IBM among its members.

VET’s blockchain operates with a “proof-of-authority” consensus mechanism, unique from Bitcoin’s Proof-of-Work (PoW) and Ethereum’s Proof-of-Stake (PoS) system. 

Structurally, VET investment tokens are complimented by VTHO utility tokens. There is a fixed number (87 billion) of VET tokens. VET continuously generates VTHO at a rate of 0.000432 per VET token daily, for a total of 37,584,000 new VTHO tokens every 24 hours. When VTHO is used for a transaction, 70% is destroyed while 30% is retained by Authority Masternodes (AM) that validate, and produce blocks. VET holders have immediate liquidity for VTHO, which has an independent market price, making the distribution work like interest paid on traditional fiat currencies or dividends paid by stock shares in order to host an AM, the user must hold 25 million VeChain tokens (VET) and be qualified by the VeChain Foundation.

In December 2019, The VeChain Foundation announced a theft of $1.1 billion in tokens from the foundation’s own wallet. The stolen funds were tagged and exchanges blacklisted all transfers related to the addresses involved.