What are the advantages of the Vechain dual token strategy?
The Vechain token was the first of its kind, and it solves the need of most enterprises from production to supply. The Vechain token is such that it uses the DLT (Distributed Ledger Technology) to improve the product life cycle management and supply chain. Vechain is essential to business owners and enterprises looking forward to improving their business processes, protocols, and supply chains.
Since the Vechain is the first of its kind in the business community, it has a large chunk of the database, and these data times are not communicated optimally. Some of them often suffer severe compartmentalization, which leaves the whole supply chain in the hands of centralized data information. Because of this, there are problems such as delayed data processes and a lack of transparency.
With Vechain, business owners can track a large chunk of data with little effort. Some of the tracked records are storage temperature, quality, authenticity, and your product’s transportation status from the producers to the final consumer. You can buy Vechain and accumulate VeThor, which is also a token on the Vechain blockchain. All these features, as mentioned above and many more, are what Vechain offers via a distributed business and trust-free ecosystem. With this concept, Vechain improves accountability and reduces overhead generally on the blockchain.
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Vechain Dual Token
If there’s any similarity between Vechain and Ethereum, it’s the dual token strategy. This means there are two tokens on the Vechain network with different purposes. One is used for programming and the execution of smart contracts, while the other serves as the primary token, digital cash, and public investment. This dual strategy adopted by the Vechain network has its influence on the business sector. Investors and crypto analysts would have no option other than to buy Vechain and invest. Some cryptocurrencies with this dual strategy are Neo and Ethereum, having Gas and Ether, respectively.
Advantages of the dual token strategy:
There are two main advantages of this dual token strategy on the Vechain network, and they include;
● It enhances effective governance:
One of the main aims of the dual token strategy is to help improve the governance on the Vechain network. If the governance is not considered, the risk of both tokens suffering hard forks from unsatisfied adopters is high. Most times, a token would have great fundamentals and a roadmap, but lacks effective governance. This could be problematic for both the Vechain native coin and the second token. Hence, the reason for the dual strategy.
● Provides a predictable economic model:
The dual token strategy is such that you cannot use the Vechain network without having both tokens. The reason is that for every Vechain that you have, you also get to earn VeThor tokens, which remains the gas for Vechain. Hence, before you can use the Vechain network for the tracking of your products or its supply chain, you need to buy Vechain and buying Vechain earns you VeThor. So, to an extent, it gives you a clearer picture of the whole Vechain model as well as its price trends and fluctuations.
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How do I invest in Vechain?
The process involved in investing in Vechain is quite similar to the entire process involved in investing in any cryptocurrency. All you need do is buy Vechain from a reputable exchange platform, and you either trade or hold for the long term. Vechain is what you buy, and it’s the public investment token with increment value within the Vechain network. It can trigger smart contracts and could also be sent across blockchains. Payments are made with Vechain on dApps for transactions and other services.
VeThor, on the other hand, is the second token on the Vechain network and is denoted as VTHO. It’s the gas paid on the Vechain network to power smart contracts applications, and it’s essential that VeThor is not available for public sales. Hence, the VeThor is used by developers to pay for the cost of contract execution. Recall that developers need to pay for every contract deployed on the Vechain network. Hence, they use VeThor.
So, if you have got your Vechain and wonder how to store them, it’s pretty straightforward. If you are looking forward to trading the Vechain token for quick returns, you might choose to keep them on your preferred exchange platform like Bitvavo, where you get to effectively and efficiently trade your token. If you are looking forward to HODLing the token for the long-term, then you might be needing a hard wallet that uses cold storage to keep your tokens off the hook pending the time you sell it. Using the hard wallet makes it quite impossible for an online threat to hack into your wallet.