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Binance supports VeChainThor’s distribution of VTHO and VET

Simran Alphonso



Binance supports VeChainThor's distribution of VTHO and VET
Source: Pixabay

On 25th July, Binance announced the support for distribution of VTHO to VET holders. This announcement was the result of Binance completing the VEN Mainnet token swap to VeChainThor [VET] on 24th July.

Binance tweeted:

“#Binance Will Support the Distribution of #VTHO to #VET Holders …”

Hannah Mumford, a Twitter user commented:

“Can I still send my ven to binance for token swap? ??”

Louis Jenner, a crypto-enthusiast said:

“if only someone explained how do i invest in vechain or ven or vet or vtho i would understand this system goshhhh”

Binance stated that after holding a discussion with the VeChain team, Binance has decided to support the distribution of VTHO to VET holders. Binance will distribute VTHO on a monthly basis, which will be calculated based on daily snapshots of each user’s VET balance.

The daily VTHO generated by each user will be equal to the total VTHO generated by Binance every day. The ratio is stated to be 1:1. Binance also exclaimed that users’ VTHO holdings ratio is equivalent to the total VET held on Binance.

Binance further instructs that VET balances under 1 VET including the ones in trade orders will not be included in the daily VTHO calculations. The calculations of VTHO will be done on a daily basis even though its distribution will purely be monthly. The distribution of VTHO will be carried on for VET holders before 5th of every month.

On 25th July, trading for the new VET/BTC, VET/ETH, VET/BNB, and VET/USDT trading pairs opened at 4:00 AM [UTC]. The commencement of withdrawing and depositing VET tokens took place simultaneously.

VeChain ecosystem is similar to the two-token system that NEO and GAS follows. Both the tokens drive NEOs network and Binance distributes GAS tokens to its NEO holders on monthly basis. Similarly, Binance will distribute VTHO tokens to all its VET holders.

VEN is the old token of VeChain, as VeChain carried its token swap and blockchain migration movements, the token changed from VEN to VET. The VEN holders received 100 VET for every 1 VEN.

VeChainThro team has further explained VTHO in their whitepaper saying:

VTHO description | Source: VeChainThor Whitepaper

VTHO description | Source: VeChainThor Whitepaper

It was recorded that Redditors were complaining about their being disappeared on Binance after the completion of VeChainThor’s Mainnet. However, this changed as Binance introduced the distribution of VTHO tokens for VET holders.

Dennisbailey, a Redditor said:

“I just set up a vechain wallet and sent my funds there. It actually is really simple and it looks great. And I can see my balance live, dont have to wait a month for it to be changed. And exchanges can have issues sometimes. Binance seems to be handling those really well, but still just to be sure 😉 In the end I dont see a reason to not use the wallet over Binance if you intend to hold.”

Sannyrk, another Reddit user said:

“Does this mean long term it is better to keep funds on Binance if you have a smaller node reward? It appears they are distributing all their VTHO linearly which means you will get more if they get their node bonus.”

Reddit user Criptolete replied:

“Nope, Binance will distribute only basic VTHO rewards. VeChain just tweeted about it to confirm that.”

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Simran Alphonso is a Journalist at Ambcrypto. She has a background in Financial Markets and holds expertise in Digital Marketing.