Does VeChain have a limited supply?

VeChain, a prominent blockchain platform, has established a definitive ceiling for its total supply of VET tokens, capping it at an impressive 86.712 billion. This cap serves as a fundamental parameter governing the circulation and value of the digital asset.

The PoA consensus mechanism empowers a select group of trusted validators, or authorities, to verify transactions on the VeChain network. This approach ensures swift and secure transaction validation while minimizing the environmental impact often associated with traditional mining methods.

According to reputable market data aggregator CoinMarketCap, the current circulating supply of VET tokens stands at 64.3156 billion. This significant figure highlights the widespread adoption and active trading of VeChain's native currency.

With the total supply and circulating supply figures in mind, it becomes evident that approximately 25.8% of the VET tokens remain uncirculated. This portion represents a potential reserve that could enter the market in the future, influencing its overall availability and price dynamics.

Contrary to popular blockchain networks that rely on mining to validate transactions, VeChain adopts a unique approach. It foregoes the energy-intensive mining process and instead utilizes a consensus system known as 'proof of authority' (PoA).