VeChain has launched its Hayabusa upgrade, a protocol-level hard fork that replaces its long-standing Proof of Authority model with a Weighted Delegated Proof of Stake (DPoS) consensus and reworks token economics. The upgrade introduces NFT-based staking tiers, a 100% gas-fee burn and a VTHO issuance model projected to cut inflation by 60–70%, changes framed as improvements for decentralization, predictability and institutional suitability. The initiative also emphasizes developer tooling and enterprise readiness to support adoption and operational predictability.
Consensus redesign and NFT-driven staking tiers
The core technical move replaces the 101-node Proof of Authority with a DPoS system where 101 rotating validators will be elected by VET holders via an NFT-driven mechanism called StarGate. Delegated Proof of Stake (DPoS) is a consensus where token holders vote to elect a set of validators responsible for block production, and the StarGate flow introduces discrete staking tiers that range from 10,000 VET to 15,600,000 VET, converting passive holdings into active validator participation and VTHO rewards.
Product-impact: the NFT-based staking model reduces barrier ambiguity for stakers by making validator eligibility explicit, but adds steps: NFT acquisition, staking approval and periodic validator rotation. For custodial treasuries and institutional wallets, this raises integration needs around transaction signing, permission transparency and support for NFT-stake UX patterns. Improved EVM compatibility and an official JavaScript SDK aim to shorten developer onboarding and simplify wallet compatibility for these flows.
Hayabusa links VTHO issuance to the total VET staked and implements a full burn of gas fees, a combined change designed to align supply with on-chain demand and to create deflationary pressure. Projected outcomes cited by the project estimate a 60–70% reduction in VTHO inflation, and burning 100% of gas fees removes a recurring supply source and shifts fee dynamics while increasing fee predictability for enterprise users and changing traditional per-transaction cost exposure.
Product-impact: wallets and dApps must reflect the new estimated gas calculations and confirmation modals to communicate that gas outflow contributes to token scarcity, not just miner or validator revenue. UX risks include unclear estimated gas displays and added cognitive load for users during staking tier selection. The upgrade also introduces developer-facing improvements and a repository for protocol proposals to help teams calibrate gas estimation and wallet flows.
Hayabusa was positioned as part of a broader “VeChain Renaissance” and accompanied proactive regulatory steps, including MiCA-related whitepaper submissions to align with EU rules for institutional adoption. To surface vulnerabilities, the project launched bug bounty initiatives with rewards up to $160,000 through an external program, and major exchanges coordinated temporary suspensions of deposits and withdrawals around a hard-fork window, with an operational checkpoint cited around July 1, 2025 at block height 22,084,200 and public notices tied to the December launch communications.
Hayabusa bundles a consensus re-architecture, a redesigned incentives layer and compliance-focused governance to reduce VTHO inflation and increase validator participation. For product teams, the immediate task is adapting wallet and dApp flows for NFT-staking UX, updated gas estimation and clearer confirmation modals to preserve permission transparency and reduce onboarding friction.
