veDelegate Secures Endorsement Votes to Participate in VeChain's Governance Round

VeChain’s decentralized application veDelegate announced a major milestone in its governance journey. In a post on X, veDelegate revealed it had secured enough endorsement votes to participate in next week’s governance round officially.

veDelegate, a decentralized application on the VeChain blockchain, announced a major milestone in its governance journey. In a post on X, veDelegate revealed it had secured enough endorsement votes to participate in next week’s governance round officially.

The development marks a significant step forward for veDelegate, which aims to enhance DAO transparency and introduce innovative DeFi features to the VeChain ecosystem. As part of its efforts, veDelegate will begin offering rewards to users who delegate their votes to the dapp.

According to the CNF report, veDelegate will soon share details on how it will contribute to governance and reward users. In the meantime, users can already update their voting preferences to support veDelegate in the upcoming round.

The news sparked discussions among VeChain users regarding the sustainability of the endorsement system as VeChain’s ecosystem continues to expand. One user expressed concerns about the challenges future dapps may face in securing endorsements.

“As dapps grow, it will become more and more difficult to acquire endorsements. This is not sustainable going forward,” the user wrote.

In response, veDelegate clarified that endorsement votes are still available for new decentralized applications to secure. They noted, “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.”

However, the user raised further concerns about scalability and competition among dApps. They 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 the challenges but highlighted the flexibility and potential for adaptation within the system. “Yeah agreed that there might be some growing pains later on, but I don’t think we’re close to that point yet,” they responded.

The team also pointed out the role of Economic Nodes in the ecosystem, stating, “It’s not just X-Nodes that can endorse but also Economic Nodes, and those can still be minted. If the demand for votes would actually grow a lot, there would be extra incentive for people to mint Economic Nodes and therewith increase utility of VET.”

The governance model employed by VeChain has drawn attention as the blockchain scales its ecosystem. With the team aiming to boost the utility of the VET token, the VET price may also stand to benefit.

As the token adoption grows within the ecosystem, so will the demand for the VET crypto, which could lead to increased gains. Currently, the VET price is already seeing an uptrend, trading at $0.03255 with 2.48% gains on Friday, November 22.

Moreover, in the past seven days, the VeChain token’s value has soared by nearly 31%. Meanwhile, the monthly gains stand at an impressive 43%.