VeChain launched the Hayabusa upgrade around December 2, 2025, replacing its Proof of Authority model with a Delegated Proof of Stake (DPoS) system and reworking VTHO generation and staking. The upgrade aims to broaden validator participation, tie VTHO issuance to staked VET and improve regulatory alignment and developer compatibility, setting the stage for a more open and adaptable network.
From permissioned PoA to community-driven DPoS
Before Hayabusa, VeChain used a Proof of Authority (PoA) model with a fixed, permissioned set of 101 Authority Masternodes run by known entities. That model provided high throughput and predictable costs but concentrated validation power and limited direct participation by ordinary VET holders, narrowing how stakeholders could influence network security.
Hayabusa implements DPoS under VIP-253, enabling VET holders to delegate stake and elect validators. Delegated Proof of Stake (DPoS) is a consensus model where token holders vote for a smaller, rotating set of validators who secure the network, increasing decentralization and making the validator set dynamic. The project positions this governance shift as strengthening censorship resistance, reducing single points of failure and supporting compliance with the EU’s MiCA framework by making validator selection and staking more transparent.
The upgrade redefines VTHO economics by tying generation to staked VET rather than a fixed per-token issuance. VTHO continues to be consumed and burned on transactions, and linking generation to staking is intended to reduce inflationary pressure and align rewards with active participation.
The StarGate platform, upgraded in the Hayabusa release, introduces NFT-based staking tiers, with entry points reported between 10,000 VET and as high as 15.6 million VET, and a user interface designed to simplify migration and staking operations. APYs will remain variable, driven by network activity and participation, explicitly incentivizing long-term staking and active delegation.
The upgrade also aligns VeChainThor with Ethereum’s Shanghai changes (VIP-242) to improve developer experience and interoperability. As VeChain put it in an official post, “VeChainThor is now aligned with Ethereum’s Shanghai release introducing PUSH0 opcodes and optimized gas costs,” and JSON-RPC support and EVM compatibility are cited as measures to ease porting of dApps, tooling and institutional integrations.
A security program including bug bounties—reaching rewards up to $40,000—accompanies the launch, and the project highlighted real-world use cases such as a partnership involving Franklin Templeton’s BENJI token for corporate payments as part of broader enterprise engagement. These measures are intended to harden the upgraded stack while signalling that the network is being positioned for practical, enterprise-oriented adoption.
Operationally, exchanges temporarily suspended VET/VTHO deposits and withdrawals to facilitate the network transition, with platforms named in reports including CoinW and AscendEX. The market reaction was muted and short term, with a reported 1.3% dip in VET over 24 hours after the announcement, and market commentary pointed to expected volatility around validator elections, staking migrations and post-upgrade liquidity adjustments.
Hayabusa shifts VeChain from a permissioned validator model to community-driven staking and links token economics to active participation. The upgrade seeks to balance enterprise-grade throughput with increased decentralization and regulatory clarity as VeChain adapts to a more institutionally focused landscape.
