VeThor Token (VTHO): an overview of the "gas" token of the VeChain ecosystem

Developers of some blockchain ecosystems, such as VeChain, take a different approach and provide users with two or more native cryptocurrencies, each addressing a separate set of tasks such as payments, smart contract enforcement, and DAO management.

What is VeThor?

VeThor, or VTHO, is the second token of the VeChain ecosystem. It exists alongside VET and plays a key role in the blockchain's functioning. The VTHO token was issued and listed on exchanges at the end of July 2018, a month after the first VeChain token appeared.

The value of the VTHO token reached its all-time high (ATH) a couple of days after listing at $0.042. However, since then, the price of the VeThor cryptocurrency has fallen by more than 90%. As of February 2025, it is $0.0039 with a market capitalization of $337 million. According to the monitoring service CoinMarketCap, this indicator ranks the token 167th among digital assets.

VTHO is a utility or utility token created per the VIP-180 standard developed by the VeChain team to issue digital assets in its ecosystem.

As of February 2025, all 82.6 million existing VTHO tokens are in circulation. At the same time, the VeThor token has no maximum issue, which means that its number may increase indefinitely in the future.

How does VeChain work, and what role does VeThor Token play in its ecosystem?

VeChain is a decentralized Blockchain-as-a-Service (BaaS) platform primarily focused on enterprise users.

The VeChain team has developed a platform tailored to the Internet of Things (IoT) market that can integrate with smart chips, NFC modules, QR codes, and RFID trackers. This improves the efficiency of digital systems in areas such as supply chain management, product authentication, automotive, and trucking.

The primary function of the VeThor token in the VeChain ecosystem is to pay for gas. Users pay fees on the VeChain blockchain with VTHO tokens for transactions, particularly transactions requiring smart contracts (swaps, lending, and payment for services). In other words, VeThor fuels the VeChain blockchain, which is why VTHO is also called a "gas" or "energy" token.

In addition to this function, the VeThor token performs another one — a payment function. Token owners can use VTHO to pay for goods and services in decentralized applications (DApps) of the VeChain ecosystem.

However, VTHO requires the second token of the VeChain ecosystem, VET, to function. VET helps generate VeThor tokens, which are credited to long-term holders as a reward for holding VET. Moreover, the longer the period of VET storage, the more VTHO tokens will be credited to VeChain Token holders.

Tokens are inextricably linked: without VeChain, it is impossible to get the VTHO token, and without VeThor Token, it will be impossible to make transactions with VET tokens because it will be impossible to pay transaction fees. At the same time, VTHO and VET prices are quoted separately on exchanges as two independent tokens.

VeChain's peculiarity lies in the gas payment mechanism: when a user makes a transaction and pays a commission, 70% of VTHO tokens are burned, and the remaining 30% are sent to the nodes-regulators (validators) that ensure the network's functioning and security.

VeThor's outlook

Vechain is not just another blockchain ecosystem; there are already hundreds in the crypto industry. Large companies and government agencies are using this platform, including Walmart China, BYD, and the Chinese government.

For example, Walmart China uses VeChain for the logistics of its products, from production to delivery to points of sale. The Chinese government has partnered with VeChain to implement blockchain technology into state government systems in the Gui'an region.

However, at the same time, the disadvantage of VeChain is that the ecosystem is predominantly focused on the Asian market, which, although large enough, still limits its application outside the countries of this region.

Using the VeThor token to pay for gas ensures a constant demand for the token, as with other similar assets such as Bitcoin and Ethereum. Therefore, as the number of VeChain users grows, the price of the VTHO token is likely to grow as well.