VeChain launches Hayabusa upgrade, shifting to public DPoS consensus

VeChain has activated its Hayabusa upgrade, replacing its long‑standing Proof‑of‑Authority (PoA) model with a permission‑less Delegated Proof‑of‑Stake (DPoS) consensus on the mainnet [1]. The change also overhauls tokenomics, directing all VeThor (VTHO) rewards to stakers and introducing a full base‑fee burn mechanism similar to Ethereum’s EIP‑1559 [2].

Key takeaways

• Hayabusa transitions VeChain from PoA to public DPoS, making validator participation open to anyone [1]
• All VTHO rewards are now allocated to stakers, eliminating idle VTHO generation on exchanges [2]
• A 100% base‑fee burn and priority tip system are implemented to improve fee predictability [2]
• The upgrade is the eighth hard fork and is reported to the EU’s ESMA register under MiCA [1]
• New partnerships include Rekord for Digital Product Passports and UFC’s “Build Your Body” app [1]

Technical shift to delegated proof‑of‑stake

The Hayabusa upgrade marks the first time VeChain validators are “public and permissionless,” according to CEO Sunny Lu [2]. Under the new DPoS model, each validator can stake up to 600 million VET, a figure far larger than Ethereum’s 32 ETH limit, which Lu says allows greater participation flexibility and influences reward weighting [1]. Minutes after activation, the network produced its first DPoS block, formally ending the PoA era [1]. The upgrade also introduces a 100% base‑fee burn and a priority tip system for validators, mirroring Ethereum’s EIP‑1559 design to give developers more predictable gas costs [2].

Revised tokenomics and ecosystem growth

Hayabusa’s tokenomics redesign directs all VTHO rewards to active stakers, a move intended to raise the annual percentage yield (APY) for participants and reduce “idle” VTHO that accumulates on exchanges [2]. The project claims this creates a more deflationary environment for the gas token [1]. Alongside the consensus change, VeChain continues its “Renaissance” roadmap, which includes EVM upgrades, new developer tools, and governance enhancements [2]. The network has also filed the technical changes with the European Securities and Markets Authority (ESMA) as part of the MiCA framework, underscoring its regulatory focus [1].

Why it matters

Hayabusa is a pivotal step toward greater decentralization and economic security for VeChain, aligning its consensus with broader industry trends while preserving its enterprise‑focused utility. The shift to public DPoS and the reallocation of VTHO rewards aim to incentivize community participation and tighten token supply dynamics. Regulatory confirmation with ESMA may smooth VeChain’s expansion into regulated European markets, and partnerships such as those with Rekord and the UFC’s fitness app illustrate the platform’s continued emphasis on real‑world use cases. The upgrade sets the stage for upcoming phases of the Renaissance roadmap, including full EVM compatibility and AI‑agent infrastructure slated for 2026.