Functionality Changes

Maturity Period

In Phase 1, when staking, the delegation was automatically started and rewards would start accruing only after the maturity period would end. This means that the only operation the user had to make is "stake" and he could forget about everything and come back months later to claim all accumulated rewards.

In Phase 2, it is not possible to delegate if maturity period is not elapsed. This means that the user now needs to stake, wait the maturity period, come back to StarGate and delegate in order to start accumulating rewards.

A Boosting functionality was added in Phase 2 to allow the user to skip any maturity period by paying a fee in VTHO. If such option is selected during the stake phase then everything can be done by the user in one operation and start to accumulate rewards immediately: stake, boost and delegate.

Delegation

In phase 1, when staking, the delegation was automatically initiated. Starting a new delegation was also immediate, starting accumulating rewards from that block.

In phase 2, when staking (without boosting), the delegation is not automatically initiated. Also, when starting a new delegation, the NFT does not start to accumulate rewards from that block but from the block when the next period of the selected validator starts.

Auto-renew is always on: there is no such option as entering delegation with auto-renew turned off. To achieve this behaviour, the user must enter delegation then request to exit it once the delegation becomes active.

Another important difference is that previously it was up only to the user to decide when exiting delegation. This remains true, but because of the nature of the protocol, if the validator the user is delegating to decides to exit, the delegation will end as well.

APY

In Phase 1, APYs were fixed and decided by VeChain Foundation, with rewards coming from a specific pool of VTHO rewards.

In Phase 2, APY is dynamic and depends on many factors, such as: amount of blocks the validator is processing, amount of delegations the validator has, and tiers of delegated NFTs.

Rewards

Base VTHO rewards (accumulated just by holding VET) do not exist any more. VTHO can be generated only by actively delegating to a validator.

In Phase 1, rewards were accumulating over a 7 days period, after which they were becoming claimable. Now the periods are not fixed to 7 days any more but depend on the validator settings, which can be: 7, 15 or 30 days.

When transferring an NFT, unclaimed rewards are not automatically claimed any more (only happening now when changing delegation or unstaking).

All accrued delegation and base VTHO gerenation rewards accumulated during Phase 1 were all claimed for users by the VeChain Foundation with the rollout of Phase 2, allowing users to start with a fresh state.

NFT Managers

The manager of the NFT is reset upon any new transfer.

All functionality is now handled internally without the need of a proxy contract.

NFT Transferability

Differently from Phase 1, where NFT was locked while delegation was active, in Phase 2 such restriction was removed and the NFT is always transferable.

When transferring an NFT, by manually sending it or by selling on a marketplace, the new owner owns the staked VET, all the unclaimed rewards and all currently locked rewards (if NFT is delegated).

Migration

Migrating now requires specifying a validator to delegate to.