VeChain’s decentralized application veDelegate has reached a significant milestone in its journey towards smarter governance. On November 24, veDelegate announced that it had secured enough endorsement votes to participate in the upcoming governance round, a development that has sparked both excitement and skepticism among VeChain users.
A Major Milestone for veDelegate
In a post on X, the veDelegate team shared their achievement, stating, “Exciting news: veDelegate has secured enough endorsement votes to officially join next week’s governance round!” The announcement highlighted their mission to enhance DAO transparency and introduce innovative DeFi features within the VeChain ecosystem. The team also indicated that they would soon reveal how they plan to reward users and contribute to governance. They encouraged users to consider voting for veDelegate in the next round to drive impactful changes.
This update has led to lively discussions within the VeChain community about the sustainability and scalability of the endorsement system. While some users praised veDelegate’s progress, others raised concerns about the long-term viability of the system as VeChain’s ecosystem continues to expand.
Addressing Skepticism and Challenges
One user expressed concerns about the future challenges of acquiring endorsements as decentralized applications (dApps) proliferate. They noted, “As dapps grow, it will become more and more difficult to acquire endorsements. This is not sustainable going forward.”
In response, veDelegate reassured the community about the system’s flexibility. They explained that endorsement votes would remain available for new dApps and that Economic Nodes, in addition to X-Nodes, can also endorse projects. veDelegate stated, “Over the next few weeks, we’ll likely only see more nodes joining the pool if they see there’s demand and a nice APY for them.”
Despite this optimism, users continued to voice concerns about scalability and competition among dApps. Another user warned, “Dapps will increase over time, and nodes will likely decrease over time, or at best stay the same. At some point, as the ecosystem grows, this will become a problem. However, on the flip side, if it becomes more difficult to get endorsements, developers might look elsewhere.”
veDelegate acknowledged these concerns but emphasized the system’s potential for adaptation. They remarked, “Yeah agreed that there might be some growing pains later on, but I don’t think we’re close to that point yet.” The team highlighted that the minting of Economic Nodes could increase if the demand for votes grows significantly, thereby enhancing the utility of VET.
The Impact on VET Token
The governance model’s reliance on nodes and endorsements has drawn significant attention as VeChain scales its ecosystem. The team is optimistic that boosting the utility of the VET token will lead to increased demand and potentially higher prices. As reported by CNF, the VET price has already seen an uptrend, trading at $0.03255 with a 2.48% gain on November 22. Over the past seven days, the token’s value has surged by nearly 31%, with monthly gains standing at an impressive 43%.
As veDelegate continues to navigate the challenges and opportunities within the VeChain ecosystem, its focus on flexible and scalable governance solutions will be crucial. The endorsement system, while not without its challenges, offers a path toward smarter, more inclusive governance that could benefit the entire VeChain community.
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