From PoA to DPoS: A Network Powered by You

True decentralization is not leaderless, it’s leader-proof.

When we launched the VeChainThor mainnet in 2018, it came with a powerful message: ‘The Power for change is in your hands”.

True to that original vision, the upcoming Hayabusa upgrade brings changes that place you at the core of the blockchain, empowering and rewarding participation like never before.

One key change is to VeChainThor’s consensus mechanism — migrating from Proof of Authority (PoA) to Delegated Proof of Stake (DPoS). This major update will fuel VeChain’s next phase of growth without compromising the predictable costs and features that real world users rely on.

This update transforms every VET holder into an active cooperant, turning user participation into shared, sustainable value creation — aligned by the common goal of long term growth and success.

TL;DR — What’s Happening

• VeChainThor is moving from Proof of Authority (PoA) to Delegated Proof of Stake (DPoS).
• Anyone with VET can participate by staking and delegating to Validators.
• VTHO rewards become dynamic, meaning only staked VET earns VTHO via protocol block rewards.
• Security and decentralization increase while predictable fees remain.
• PoA helped VeChainThor deliver enterprise-grade reliability and 100% uptime since launch. As VeChain’s ecosystem and macro regulatory environments have matured, three priorities emerged:ay updated and what to do when Hayabusa arrives!s

Why change consensus?

PoA helped VeChainThor deliver enterprise-grade reliability and 100% uptime since launch. As VeChain’s ecosystem and macro regulatory environment have matured, three priorities emerged:

1. Scalability with decentralization: Expanding the Validator pool and decentralizing the chain, while keeping operational reliability high.
2. Security via ‘skin in the game’: Raising the cost of attacks by tying consensus to stake.
3. Aligned incentives: Direct and greater protocol rewards to active participants who contribute to security and performance.

DPoS meets these goals by making stake the backbone of consensus and rewards.

What DPoS means for VeChain

DPoS involves two kinds of participants: Delegators and Validators. Delegators are VET holders who stake their VET, and mint a StarGate NFT. They then choose one or more Validators to support by delegating their stake. You can move, renew, or withdraw your stake according to StarGate’s rules and the Validator’s performance. Validators run the servers that produce and finalize blocks — and the Validator pool competes for Delegators on the back of their uptime, transparency, responsiveness, and community trust.

A Validator’s chance to produce the next block is a function of total VET delegated by Delegators — E.g., their ‘weighted stake’. Reliable teams attract delegations; weak ones lose them. Clear economic and reputational incentives keep validators online and compliant.

In this model, VeThor (VTHO) generation is dynamic. Only staked VET earns VTHO, paid as protocol block rewards to Validators and then shared with their Delegators in a 70:30 ratio. Rewards are tied to securing the network, not idling VET balances, preventing inflation in exchange wallets, for example.

From PoA to DPoS — what changes for you?

Whether you hold VET, run infrastructure, or build applications, DPoS changes how you participate without adding complexity. Token holders gain a direct role in security and rewards, Node operators compete on performance and trust, while businesses and builders keep the predictable costs that make consumer-grade experiences possible.

If you hold VET, you can take an active role in security by staking and delegating one or more Validators, earning VTHO directly from protocol block rewards. Choice matters: uptime, transparency, community presence and a proven track record are signals Delegators can watch.

If you plan to run blockchain infrastructure, you can become a Validator by meeting technical requirements and owning a minimum of 25 M VET. You’ll need to deliver high uptime (e.g., 99.9%+), 24/7 monitoring, and ideally, engage with your Delegators. It’s a performance business; Delegators can and do move, so reliability and communication are essential.

If you build applications or run enterprise workloads, fees stay predictable, and the developer’s experience remains familiar. StarGate and VeWorld streamline staking, delegation, renewal, exit, and withdrawal into a single, simple journey and creates a cohesive access point for applications on the network.

The Role of a Validator

Infrastructure Prospective validators need to meet technical criteria (hardware, networking, monitoring, key management) and register on-chain via StarGate. They can self-bond the required VET collateral (25M) and seek Delegators to increase their total weighted stake.

Operations Validators must maintain high uptime, keep nodes up to date, and follow upgrade procedures. They publish clear information so delegators can evaluate them.

Competition Because selection is stake-weighted and visible, Validators succeed by communicating performance, offering transparent terms, and engaging with their communities. It’s a winner-takes-all approach (up until the Validator weighting limit of 600M VET, that is).

Retention If a validator underperforms, Delegators can redelegate. If stake falls or issues persist, the validator can be cycled out of the active set. This market-style pressure drives reliability over time.

Rewards: How VTHO Flows in DPoS

Currently, VTHO is generated anywhere a VET token is held. Under DPoS, only staked VET earns rewards, which the protocol pays out as block rewards to Validators who then share with their delegators according to on-chain rules. This increases per Node rewards considerably, by condensing the rewards pool to active participants only.

This ties rewards to actual security work, lessening inflationary pressures, and lets VTHO burn scale naturally with real usage while fees remain predictable. Staking today positions you to earn staking-based rewards as Hayabusa mainnet approaches.

Builders, Businesses & Developers

VeChain’s hallmark of low, predictable fees is maintained, along with fee sponsorship, multitask transactions, EVM tooling, and the upcoming JSON RPC integration that vastly simplifies integrations/porting/interoperability.

Operations remain audit friendly, with established institutional Validators and community operators reinforcing uptime targets, monitoring, and incident response. In short, your existing integrations continue to work while the security model strengthens, and community participation broadens.

Migration notes for Legacy Node holders

If you hold a legacy X or Economic Node:

• Migrate now! Earn boosted rewards and join StarGate by following the steps on stargate.vechain.org
• Your participation style shifts from passive (holding VET) to active (staking VET).
• At Hayabusa’s mainnet launch you will have direct influence over consensus security and a clear rewards path tied to activity.

FAQs

Do I have to run a node to earn rewards? No. You can stake and delegate your VET to one or more validators through StarGate and earn protocol rewards without running infrastructure.

Does the two-token model still deliver predictable for enterprises & apps? Yes. Predictable, low transaction costs remain a core design tenet. DPoS enhances security without sacrificing fee stability.

What happens if my selected validator goes down? Underperforming validators produce fewer blocks and thus fewer rewards. You can redelegate your VET to better operators according to the platform’s rules.

Does this make VeChain “more decentralized”? Yes. Security is powered by every VET holder, KYC is entirely removed, and anyone can now become a Validator with the requisite VET collateral.

Can I delegate to multiple validators? Yes. Delegators can split their stake across several validators to diversify and support decentralization. Each Delegator Node is assiged to a Validator individually.

How are rewards distributed? VeThor (VTHO) is generated dynamically and distributed via protocol block rewards to validators, who share with delegators based on stake and onchain mechanics.

What to do now?

Open VeWorld, tap Earn to access StarGate, stake your VET and mint a staking NFT of your choosing.

You will be able to delegate to a Validator when mainnet launches; until then, turn on push notifications and stay up to date!

Stake now to earn boosted rewards as Hayabusa approaches.

From PoA to DPoS: A Network Powered by You was originally published in VeChain on Medium, where people are continuing the conversation by highlighting and responding to this story.