VeChain staking explained – How to stake VET & earn VTHO rewards
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One of the fastest-growing use cases of the cryptocurrency world is staking. Staking cryptocurrencies is an essential part of Proof of Stake (PoS) blockchains.
And it is also a great way for holders to earn passive income and increase their overall portfolios.
I myself am a regular cryptocurrency staker. And I enjoy the fact of both getting involved with the blockchains and cryptocurrencies that I am invested in, but also as a way to generate extra income.
In this article I wanted to explain how VeChain staking works. How you can get started staking your VETs to generate VTHO.
And I will show you how easy it is to start staking your VETs. And what options there are available for you to use.
I myself stake my VET via the mobile wallet app. But there are other ways of going about it too. I will talk about them all in this post.
What is VeChain
Before I dive into the concept of staking your VeChain tokens I wanted to shortly summarise the VeChain blockchain for any newcomers.
In short I can say that VeChain like Ethereum and others is building a blockchain platform. Where businesses can create their own decentralised products and applications.
VeChain is geared towards the enterprises. And it’s focused on delivering a solution that makes it easy for new businesses to onboard and build successful blockchain use cases.
VeChain’s solution is often described as a blockchain-as-a-service (BaaS).
VeChain have a broad spectrum of industries it is targeting, from the supply chain industry where it really excels at to the automotive, medical and luxury goods industry.
How to stake VeChain (VET)
Ok so to the interesting part. How to stake your VETs in order to receive VTHO.
VeChain’s staking model is basically a two-way concept.
- The first is that everyone can ‘stake’ their VETs in a compatible wallet and receive VTHO
- The other is that there are nodes (economic nodes, economic x-nodes and authority masternodes). These node holders get extra rewards and can participate in the governance model of VeChain
By staking your VET tokens you produce VTHO tokens. VET is the value generator and sort of store of value token.
VTHO is the token used to pay for gas, the fuel that makes the network run. And it also partly paid out to the authority nodes as a reward for keeping the network running.
Anyone can stake their VETs. All you need is to hold them in a stakeable wallet and then automatically earn VTHO.
- I said that staking is an essential part of Proof of Stake blockchains. But VeChain is running a tweaked PoS model called Proof of Authority. Very similar but with a different governance model. Learn more about the difference here.
To summarise this is how staking works with VeChain:
- Deposit VET tokens in a VeChain-compatible wallet
- Hold and automatically earn VTHO
- The VTHO is paid out either every 10 seconds or on a monthly basis (usually). It depends on what type of wallet you are using
Where to stake your VETs
1 ) The VeChain mobile wallet (iOS + Android)
This is the official mobile wallet created by VeChain. And it is one that I highly recommend because how easy it is. Plus it was created by the official team. So I know how important security and user experience have been for them.
I myself am using the mobile wallet to stake my VETs. And it is very easy to do. You kind of just have it storing via the mobile wallet and then you receive VTHO automatically.
If you are a node holder (x-node or regular node) you can also receive a bonus based on your node level and your amount held. This reward is claimed by you via the mobile wallet app.
The official wallet from VeChain is great, it comes with everything you need from a modern wallet. With lots of added features from other 3rd party solutions built-in the app itself.
To start staking VET via the mobile wallet simply download the wallet application, create a new wallet (make sure you store a backup of your secret phrase) and then deposit VETs to the address given shown in the wallet.
The mobile wallet is available for iOS and Android.
- You can download the wallet if iOS here and for Android here (if you prefer you can also visit VeChain’s official website to find the links to Appstore and Google Play.
2 ) Ledger hardware wallet
You can also safely use a Nano Ledger S or X model for your VETs and still earn VTHO rewards.
And yes you can use a Ledger device and own a economic node or economic x-node.
As with all wallets applications they are simply interfaces that lets you interact with your coins and tokens that are actually ‘stored’ on the blockchain.
So with either Nano S or the newer model Nano X you can store your VETs on the blockchain and still generate and claim your VTHO rewards.
Ok so to use the Ledger wallets with VeChain you need to first download Ledger Live. And then download the VeChain app within Ledger Live.
After that you will see your VET address which you can deposit your VETs to.
In order for you to manage your VETs and claim your rewards, you need to download the Sync wallet from VeChain (Ledger’s information about Sync wallet).
The Sync wallet is a desktop client that you download and you can use it as your standalone wallet or you can use it to sync with your Ledger Nano S or Nano X.
I also recommend if you are a node owner that you then use Manager by VeChain stats to claim your rewards.
There is a more detailed guide to how this works all together here.
- You can buy a Ledger Nano X or S here.
3 ) Atomic Wallet
This is a third-party wallet application where you also can stake your VETs to receive VTHO.
Atomic is a multicurrency wallet (you can use it for most popular cryptocurrencies), it also has built-in exchanges and crypto-purchases features.
Atomic Wallet is available for mobile and desktop download (iOS, Android, Windows, macOS and Linux).
I don’t think you can yet claim extra node rewards from the Atomic wallet.
- Visit the website of Atomic to download your wallet
4 ) Exodus wallet
Exodus is another popular multi-currency wallet that you could use for VeChain. Similar to Atomic it works with most cryptocurrencies and it support both VET and VTHO.
Similar as with the other wallet alternatives you don’t need to do anything else besides depositing VET to your Exodus wallet address and then you will receive VTHO automatically.
Another popular multicurrency wallet is Exodus wallet. And this works fine to use for VeChain and to earn VTHO rewards.
Like Atomic, Exodus is available for mobile (iOS and Android) and desktop (Windows, macOS and Linux).
- You can download the wallet application you like from the official website of Exodus
5 ) Via a cryptocurrency exchange
And finally, another option that you have is to store your VETs on a cryptocurrency exchange and stake from there.
Like with the other options on this list you won’t actually need to do much more than holding the VETs in the wallet from your exchange.
And then usually the exchange pays out the VTHO reward on either a weekly or monthly basis.
The cryptocurrency exchanges that I know support VET and VTHO generation are:
So you can join any of those exchanges, deposit/buy VET there and then automatically earn VTHO.
I know you can bind an x-node to your OceanEx wallet, and then receive the extra rewards. But I don’t think it’s possible to do so at the other exchanges.
Nor does any have support for economic nodes as far as I know.
How much can you earn from staking VeChain?
There is a base generation level for staking VET. This is 0,000432 VTHO per VET.
So if you held 1,000,000 (1 million VET) without any node reward you will receive:
- 432,00 per day
- 3.024,00 per week
- 12.960,00 per month
But then you also have the node levels. Which will give increase your staking rewards. The rewards are based on your type and level of the node and the amount held.
There are three types of nodes:
The Authority Masternodes
The Authority nodes are the active node runners that validate the transactions on the VeChain blockchain. And there are a max number of 101 AM ever available.
To be an Authority node you need to own a minimum of 25 million VET. But more importantly you need to be a person or group that can and will contribute to usage and growth of the network.
All Authority Masternodes need to apply to VeChain to receive this status.
For being an AM you receive your regular base level VTHO generation but a share of all the transaction fees.
From the transactions fees, 70% gets burned and the remaining 30% goes to the Authority Masternodes.
The economic nodes
There is another node system, which is more easy to join and this is the economic nodes.
To join this node system you need to own the minimum requirement and then join the program from the mobile wallet app or VeChain Stats Manager web app.
There is a 10-30 day maturity period (time for your wallet to become a node and earn extra rewards).
This is based on which economic node level you go for (Mjolnir, Thunder or Strenght).
- Mjolnir nodes need to own 15,000,000 VET
- Thunder nodes need to own 5,000,000
- Strength 1,000,000 VET
The economic x-nodes
The x-nodes are a unique node system available on the VeChain blockchain for the early adopters. As a way to reward the early investors of VeChain they created this program.
Where x-node owners could get extra benefits such as added VTHO rewards, governance voting and other still in development benefits.
You can no longer become a new x-node, but you can buy the x-node status from someone else.
There is an open marketplace within the official mobile wallet where x-node owners can sell their statuses to other users.
So if you believe that x-nodes is worth the investment check out the marketplace via the mobile wallet app.
There are four levels of x-nodes (Mjolnir, Thunder, Strengh and VeThor)
- Mjolnir x-nodes requires 15,600,000 VET
- Thunder x-nodes requires 5,600,000 VET
- Strength x-nodes 1,600,000 VET
- VeThor x-nodes 600,000 VET
That’s the end of this guide to how VeChain staking works. Which wallets you can use to access your VETS and earn VTHO with.
I have also covered the basic of the nodes available on the VeChain blockchain and how to become one.
Which wallet you choose is up to you. I do like my VeChain mobile wallet. But if you are the paranoid type that only uses hardware wallets then you have a good option in the Ledger devices.
It comes with some additional steps but use the guide I created or the linked websites for more information.
Either way staking VeChain is really easy and it is a great way to earn extra rewards.
If there is anything in this process that you still don’t understand then please leave a comment and I will try to help you the best I can.
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Hello and welcome to Go Cryptowise.
My name is Per Englund and I’m a long-term fan and investor and trader of Bitcoin and other cryptocurrencies. I caught the attention of Bitcoin like many other several years ago, but it was first around 2016/2017 that I truly got into cryptocurrencies and blockchain technology.
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