If you HODL VET, chances are you've seen VTHO in your wallet; the gas of VeChain's ecosystem.
Each VET generates 0.000432 VTHO a day; 2304 VET generates 1 VTHO per day (365 p/y).
VTHO acts as a ROI on VET. At the current ratio (1 VTHO = 0.072 VET), this translates to 1.15% APY. So a $46 investment into VET today (15/08/2020) returns 53c per year.
No investor worth their salt would get out of bed for a meagre 1.15% APY. No way, Jose.
So the ratio MUST be higher than 0.072. The success of the VeChain ecosystem demands it. That much is clear, otherwise the investment simply will not be attractive enough once the market matures.
So what's a reasonable rate of return? I'd say 5%, minimum. Again, this is just my opinion but I don't think it's too controversial or 'pie-in-the-sky'. In fact, it's fairly conservative compared to current staking returns in the crypto space.
Let's pretend the ratio is 0.33 then, with current VET price remaining as is. So 3 VTHO buys 1 VET.
2300 VET = $46. 365 VTHO = $2.39.
This is a 5.3% return. Now VET is a lot more attractive to hold.
So clearly, relative to VET, VTHO is undervalued. Criminally so.
By my estimation, the ratio has space to do a 2.5x AT THE VERY LEAST.
Everybody wants more VET. Only a few realise the answer to acquiring it is hiding in plain sight.
