This is actually big news and only a few people picked up on this. I listened to the monthly podcast and it being over 2 hours long you have to pay attention because it was just mentioned that the burn mechanism will be adjusted. When that will happen is the big question because this has been mentioned before and I have been waiting for it to happen.
All those of you who are invested in VET must already know that the current supply of VTHO generates in the region of 36 million VTHO daily and is only burned through the number of transactions on the VeChain. VTHO is the gas token and is the action token used for the blockchain.
36K VTHO burned today thus far is 1000 x short of where the blockchain needs to be in terns of the number of transactions. There was 120K burned on the 3rd April which is still 300x short of where they need to be. Each day that passes only means there is a ton of VTHO lying around that needs to be burned.
74 Billion VTHO as a circulating supply is still a lot of gas tokens that need to be burned and why without a changed burn rate the price of VET is pure speculation.
The positives that cannot be underestimated is that next year the CBAM (carbon tax mechanism for imports and exports across Europe) goes live and why there is no panic in the ranks. The VeChain team will not openly tell you that they have this under control because no one quite knows the numbers involved. If it was just the 36 million daily VTHO that needed burning then that would be fine, but they need to do far more and bring down the circulating numbers.
If the Vechain had to double the burn rate by burning 72 million VTHO daily instead of 36 million it would take roughly 5.5 years to get to 0 supply. That is not going to happen because businesses need to stock up on either VET or VTHO to guarantee they have enough VTHO required for daily transactions.
Next week VeChain is the top line speaker at the Paris Blockchain week and I will be looking out for any announcements regarding the VTHO burn rate. This is the key part of VeChain's tokeomics and it is not something the team can ignore for much longer.