If you own 1 VEN right now, you will get 100 VET at mainnet launch. For example, 1 VEN at $5.00 = 100 VET at $.05.
It makes zero difference to the total value of what you own. It doesn’t dilute your coins — you still own the same amount proportionally. It dilutes the price by the same factor as the split. Marketcap nothing changes. It’s done purely for psychological reasons.
What will be the new price after the mainnet launch?
According to them, it is because they expect there to be so many use cases and so many enterprises using VET, that eventually tokens would have to start be broken into “cents” (think buying .02 btc now). This is confusing for most people and in general just isn’t very appealing, so they are doing a “coin split” so that we can always deal in full VET tokens.
That’s probably the reason why this split is happening. They expect the price of VEN to increase significantly and need to maintain liquidity for their enterprise partners to have flexibility.
They have spent a lot of time studying the economy of their plan, which is the huge reason for the whitepaper delay. And now we are starting to see their plan unfold.
They are basically taking the strategy of the hype coins (Tron, Verge, etc.), and implementing it into a blockchain project that has massive partnerships and use cases throughout the entire world. I can see how this could raise the price a bit (after the split) in the next bull run because like in dec/jan, newcomers just see the “small” price per coin and think “oh wow, it’s so cheap now, when it goes to $500 per coin i’m going to be rich with my 100.000 coins.”
How to convert your VEN coins to new VET coins?
The conversion process almost has to be a smart contract that you send VEN plus a new address to that will send VET to the new address. VEN can exist on an exchange alongside VET, as each VEN will be convertible to VET.
The conversion and communication with the smart contract will be handled by the new VET wallet software, to make it simple, but the underlying technique would let VEN/VET coexisting for a time, so people have time to switch over.
The only other way to do it would be if they simply use a snapshot of all the addresses at a particular time and give those addresses VET on the new chain. That would leave all the old VEN in the hands of people though, so immediately after the snapshot is taken there would be a mad dash to try to sell now-worthless VEN to the uninformed, which seems like a bad plan and certainly bad optics.
Any serious exchange that lists VEN will facilitate the switch for you. The market on that exchange will be closed while it happens. This has occurred many times with many other projects that launched a mainnet. You will also be able to do it through the VeChain wallet launching at the same time as the mainnet.
For Vechain which is using Thor as a transactional currency on its platform which is produced at a rate on the amount of VEN owned, you can’t have such a high barrier because enterprises need to be able to adjust their capital allocation and Thor production by small fractions to optimise their operations. If I need to produce another 10 units of Thor I don’t want to have to buy another 10k worth of VEN.
Thrudheim Masternodes are 250k VET before split, multiply that by 100x for the new amount. Yes they will stay the same price in fiat. Assume current price of VET at $4 USD, 250k x $4 = $1 Million. After the split, price will be 1/100 of current = $0.04 but you also require 100x the amount to achieve the Thrudheim Masternode. Therefore 250k x 100 x $0.04 = $1 Million.
Normal node reward pool is 150m VET, x node reward pool is 50m VET. The difference is that the 150m will decrease over time, while the 50m from X node will never decrease.
We will most likely have to wait for the whitepaper to be released before bonus can be discussed as it is unclear if 1 VET will still generate 0.00042 VeThor or will 1/100 of 0.00042.
But from the medium post by VeChain foundation, if you have double the amount of VET required for a Thrudheim Masternode, you should be generating twice the amount than someone that also has the minimum amount for a Thrudheim Masternode. (I’ve ignored the additional bonus for owning a x node just for simple explanation)
There hasn’t been an official answer regarding your last question, but since everything is split 1:100, the reward pool should also be multiplied by 100.
How will 1:100 affect Thor generation?
VTHO generation rate is staying the same so you will generate 100x more.
Where to store VET after the mainnet launch?
There will be a mobile wallet launch at the exact same time.
This mobile wallet will
1) facilitate the token swap from VEN to VET (most people will probably do this on exchanges, but eventually you’ll be able to do it in the mobile wallet if you missed doing it on an exchange),
2) have a module that shows you what kind of node you are,
3) automatically receive your generated Thor, and
4) eventually allow you to hold other ERC-20 tokens.
They also mentioned that although they’re talking to Ledger and other hardware wallet providers.
They are developing their own hardware wallet. Kevin explained this is essential for enterprises serving as authority nodes or holding large amounts of VET. They aren’t going online and ordering a ledger and setting it up. VeChain needs to be able to provide this service and assurance for them, and they will.
How many projects will be launched on VET mainnet?
One of the team members stated there are around 13/14 crypto projects they are working with who intend to use VeChain (either porting over from Ethereum or launching an ICO on the platform. More on this in the Q&A section).
One of them is a company that already generates $50 million/month in revenue and want to ‘blockchain-ize’ their business. He pointed out here this is a company that isn’t just interested in padding their coffers – they have money, that isn’t an issue.
These are the types of projects they like to work with. They aren’t interested in being a ‘shitcoin generator’ (this was said by Sunny in the Q&A and got a laugh and round of applause).
Last point on this, he noted that BitOcean is taking so long because the “Japanese government are being assholes”. That’s a direct quote. Sunny is hilarious.
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