We’ve noticed a good chunk of people don’t understand how the nodes on VeChain network work. So in this article we will clear some of the most common questions we’ve noticed on twitter/reddit/telegram.
1 – You can set up a masternode on the VeChain network.
This is the most common mistake we’ve seen on twitter and reddit. So let us explain. There are 2 types of nodes on the platform:
a) Authority Nodes – These nodes are in charge of creating AND validating the blocks on the network. There are a total of 101 Authority nodes. Becoming an Authority node is close to impossible. You need to have a high skill level on Linux operating systems and have 25,000,000 VET coins. By todays price that’s equivalent to $500,000. Oh and you also need to be picked from the Board of Steering Committee which are in charge of the governance on the network.
b) Economic nodes – The main idea of economic nodes is to stabilize the price of VET. And of course by becoming an economic node you receive passive income in VTHO. Now let us explain the difference.
- VET – VeChainToken will be used as a value-transfer medium
- VTHO – VeThor will be used for fees.
The picture below will make things clearer.
There are 3 levels of Economic nodes.
- Strength Node (Requires 1,000,000-4,999,999 VET)
- Thunder Node (Requires 5,000,000-14,999,999 VET)
- Mjolnir Node (Requires 15,000,000 VET)
There will be special functions that only economic nodes will have access to but that information will be presented by the team in the upcoming future. The closes comparison we can give is than an economic node is pretty close to a staking node but it doesn’t necessarily support the network directly.
2 – All Economic nodes receive VEN as a reward.
This is false. Every economic node receives VTHO as a reward for being an economic node.
You receive 0.000432 VTHO per VET every day.
Let me give an example: Let’s say you have a Strength Node with 1,000,000 VET inside it. For every 1 VET you’ll receive 0.000432 VTHO. That’s 432 VTHO each day or 157,680 VTHO per year. While it’s true you can’t directly convert your VTHO to VET you will be able to use Oceanex (Decentralized exchange based on the VeChain platform) in a few months to do that automatically.
3 – Is it too late to get an X status ?
Yes. There was a snapshot made on the 20th of March where everyone with more than 6,000 VET would be would be awarded with the X node status. Of course the monitoring process continued till 1st June. If you went below 6,000 VEN at some point you probably lost your X status. For more information you can contact the admins via Telegram.
4 – Only exchanges will perform a token swap.
This is false. Several exchanges provided the token swap Mid-July. If you’ve missed the token swap don’t worry. The mobile wallet will provide the function to swap your old ERC20 tokens (VEN) to the new coins (VET) with 1:100 ratio. So for every 1 VEN you will receive 100 VET.
And yes that does mean the supply will be x100 and the price will be 1% of what it was before the swap, but your overall value should be the same.
5 – You should send your VEN (ERC20 tokens) to your mobile wallet.
NO. Both addresses start with 0x but that doesn’t mean they are compatible. Ethereum’s blockchain is not connected to VeChain’s blockchain. If you send your ERC20 tokens to a VeChain address you will lose all your funds. If you are interested in binding your existing ERC20 wallet with your VeChain wallet follow this guide on Youtube:
VeChainThor Wallet User Manual & X Node Binding & Token Swap Guide
This video should explain to you everything about the token swap & x node binding.
6 – You need to set up a VPS to start generating VTHO.
Nope. All you need to do is Create a VeChain wallet and have the needed coins. Go back to point 1,2 and watch the video on point 5.
7 – There is no desktop wallet for VeChain.
That’s somewhat not true. There is a temporary wallet which you can use on Mac or windows but it’s not advisable to store your VET/VTHO coins there. You can find the wallet here : Link . Though the team said they are building a desktop wallet and is on their roadmap. It should be available by the end of this year(On theory).