VeChain has officially launched its StarGate staking program, marking a significant milestone in its technical evolution and broader Web3 adoption strategy. The move comes just weeks after the U.S. Securities and Exchange Commission (SEC) issued guidance clarifying that protocol-level staking does not constitute a securities offering, a decision that is expected to reshape institutional approaches to blockchain participation.
By launching StarGate now, VeChain positions itself at the forefront of an anticipated wave of institutional staking products, including potential SEC-approved staking ETFs expected as early as late 2025.
VeChain Renaissance: A Strategic Technical Overhaul
StarGate staking is part of the broader VeChain Renaissance upgrade, described by the foundation as the most comprehensive update in the blockchain’s history. The overhaul includes enhanced tokenomics, EVM compatibility, JSON RPC support, and a new Weighted Delegated Proof of Stake (W-DPoS) consensus mechanism. This change allows users with just 10,000 VET to participate in staking, significantly lowering the entry barrier and supporting network decentralization.
Key to this new approach is VeChain’s use of NFTs to represent staking participation, a novel method that improves usability while maintaining regulatory compliance. According to VeChain CEO Sunny Lu, this approach ensures “rewards as compensation for network services rather than investment returns.”
Institutions, ETFs, and the Race to Staking Integration
Institutional appetite for staking services is growing rapidly. According to a 2024 report from Bernstein Research, staking yields are expected to become a core component of crypto ETFs and custodial services offered by traditional financial institutions (source). The report estimates that staking-related ETFs could manage $30 billion in assets by 2027.
Meanwhile, large asset managers like BlackRock and Fidelity have already begun exploring staking integration into their crypto product suites, signaling growing demand for compliant and secure staking solutions.
VeChain’s StarGate staking model—with tiered access, self-custody requirements, and NFT-based access—fits well within this regulatory framework. The move is especially timely, as U.S. banks have also received preliminary authorization to participate in Ethereum transaction validation, broadening the spectrum of compliant staking activities across chains.
Boosted Rewards to Drive Early Adoption
To accelerate migration to the new model, the VeChain Foundation is allocating 5.48 billion VTHO tokens (approximately $15 million) to a six-month bonus rewards pool. During this period, early participants will receive significantly higher Annual Percentage Yields (APY) by migrating their nodes and staking VET through self-custody wallets like VeWorld.
The program introduces multiple staking tiers—ranging from Dawn (10,000 VET) to Mjolnir X (15.6 million VET)—to accommodate varying levels of participation. Once the bonus period ends, nodes will continue earning above-average APY, maintaining long-term incentives for network security and engagement.
Stakers can calculate their potential earnings using tools like the VeChainStats VTHO Staking Estimator and Redeno Staking Simulator, which help users choose the most profitable tier based on their holdings.
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Image Credits: VeChain