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- The VeChain Foundation hints at its plans to introduce a new stablecoin native to the VeChain blockchain.
- The stablecoin has been made by VeChain Foundation on Twitter with a GIF about the stablecoin named VeUSD.
- The community is majorly excited, but some think of the announcement as strange and unwanted, while some present suggestions for stablecoin.
The VeChain Foundation has stepped into 2022 with a crucial and potential declaration. The foundation posted a tweet on its official handle on Jan 3, which suggested the possible release of a new stablecoin native to VeChain known as VeUSD. However, the organization hasn’t revealed any details about its new possible product but expressed to its users that it will be something very special and something that will lead the foundation to drive VeChainThor to a different level in numerous ways.
VeChain Foundation’s tweet included details about having something special to take VeChainThor to the next level and more coming soon. It also included a GIF that shows the VeChain logo splitting and making the VeUSD logo.
The VeUSD Tool
The aim of introducing VeUSD stablecoin is to use it as a tool that will help them unlock DeFi capabilities for the ecosystem of VeChain. As per the tweet, stablecoin has been designed based on core principles of the blockchain ecosystem, which include scalability, sustainability, and versatility. As per some reports, the VeChain blockchain has been preparing for the new age of DeFi for a little longer, as the network was recently upgraded and implemented the Proof-of-Authority 2.0 following the approval from community voting.
Before the VeChain blockchain network received the upgrade, the foundation said that it was designed to bear a new wave of mass adoption concerning blockchain, and the upgrade was expected to get rid of any compromises made on the blockchain’s consensus layer. The VeChain Foundation, at that time, said that “the VeChain Research and Development teams have been working on a massive upgrade of the VeChainThor blockchain called SURFACE (PoA 2.0), standing for a Secure, Use-case-adaptive, Relatively Fork-free Approach of Chain Extension”. Therefore, the VeUSD might be the first-ever product that would support the blockchain’s power following the upgrade.
Community Response
The community responded positively, with some highlighting significant possibilities, some seeing the downsides and effects on VeChainThor, and some made suggestions. For instance, one of the users on Twitter presented a proposal for the organization to make an algorithmic stablecoin like Luna but with VeThor Energy as the collateral. Another user said that it’s terrific news and is glad to hear that the developers are looking at some models. One of the users even expressed himself as it is strange to him, and VeChain going for DeFi hints that the foundation cannot manage its core products.
The proposal made by one of the users was about making a burning mechanism that will create a consistent demand for the underlying asset and add to its increasing prices. However, the proposal gained attention from the CEO of VeChain, Sunny Lu, who later asked the community on Twitter to present a tokenomics design for this potential token. The network has been implemented in many corporate sectors and supply chains but rarely paid attention to developing a DeFi ecosystem. The approach has constantly changed with the DeFi related products, stablecoins, and new upgrades. Still, most of the community is positive and takes the declaration as bullish.
The $VET Statistics
The VeChain Foundation’s native token, $VET, has been trading at an average price of $0.0919 in the past seven days. The current token price sits at $0.08608 (at the time of writing) after facing an uptrend of 0.37% in the last 24 hours, with an all-time high of $0.278 and an all-time low of $0.0016. The token acquires a max supply cap of 86 billion, of which 64.32 billion is the circulating supply. The 24-hour volume change shows an increase of 39.58% and could be possible due to the announcement.
The foundation is yet to reveal more details in upcoming months, therefore everything till then narrows down on possibilities and predictions.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
