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description
Understanding VeChain's utility token, VET

VeChain Token (VET)

VET Characteristics Details
Type Native Coin
Precision 18 decimal places
Total supply 86,712,634,466

Native Coin: The Backbone of VeChainThor

A native coin is the primary cryptocurrency inherent to a specific blockchain network. As VeChainThor's native coin, VET serves as the fundamental unit of value and plays multiple crucial roles within the ecosystem:

  • Medium of Exchange: Facilitates value transfer within the network.
  • Store of Value: Acts as a digital asset that can appreciate or depreciate in value.
  • Utility Token: Enables access to various features and services on the VeChainThor blockchain.
  • Governance Mechanism: VET holders can participate in network governance decisions.

VET's High Divisibility: 18 Decimal Places

VET's high divisibility, with 18 decimal places, offers several advantages:

  • Micropayments: Enables extremely small transactions, crucial for many blockchain applications.
  • Precision: Allows for exact value representation in various use cases.
  • Scalability: Supports a wide range of transaction sizes, from tiny micropayments to large transfers.
  • Future-proofing: Provides room for value appreciation without limiting usability.

The smallest unit of VET, similar to Bitcoin's satoshi, is called 'wei': 1 VET = 1,000,000,000,000,000,000 wei (10^18 wei).

This high divisibility makes VET particularly suitable for:

  • Internet of Things (IoT) applications
  • Micro-incentivization in sustainability initiatives
  • Precise value allocation in complex supply chain scenarios

Total Supply: Fixed at 86,712,634,466 VET

The total supply of VET is fixed, meaning no new tokens will ever be created. This fixed supply model offers several benefits:

  • Scarcity: Creates a deflationary aspect to the token economics.
  • Predictability: Allows for more accurate long-term economic modeling.
  • Transparency: Provides clarity to users and investors about the token's distribution.
  • Value Proposition: Can potentially drive value appreciation as demand increases against a fixed supply.

Implications of a Fixed Supply

  • Long-term Value: As adoption grows, the fixed supply could lead to appreciation in VET's value.
  • Economic Stability: Prevents inflationary pressures that come with an ever-increasing supply.
  • Trust: Builds confidence among users and investors due to the predictable token economics.

By combining high divisibility with a fixed total supply, VET is designed to serve as a versatile and sustainable utility token within the VeChainThor ecosystem. This design supports a wide range of applications, from microtransactions in IoT devices to large-scale enterprise solutions, while maintaining a stable and predictable economic model.