Venice Upgrade Tokenomics: API Revenue to Trigger VVV Buyback and Burn, DIEM Supply Increased to 40,000

Odaily Planet Daily News: AI infrastructure project Venice has announced an update to its VVV and DIEM token economic models, introducing a new programmatic buyback and burn mechanism, and gradually increasing the DIEM supply target from 38,000 to 40,000 tokens.

Venice stated that VVV is its core ecosystem asset, an ERC-20 token issued on the Base chain. After users purchase and stake VVV, they can earn rewards, unlock Venice Pro benefits, and use it to mint DIEM. Previously, a portion of the platform's revenue was used for market buybacks and burning VVV.

This update first expands the sources of VVV burning. Previously, Venice had already implemented an automated VVV buyback and burn mechanism through Pro, Pro+, and Max subscription revenues. Now, this mechanism will cover API credit purchases: for every $100 worth of Venice API credits purchased by a user, $5 will be used to buy and burn VVV. This process will be executed automatically, and as API usage grows, more VVV will be removed from circulation.

Venice stated that the newly added API burn mechanism will be tracked separately on the official burn page, displayed distinctly from the burn records generated by subscription revenue.

At the same time, Venice will adjust the DIEM supply target. DIEM is the second-generation token in the Venice ecosystem, used to provide access to AI models. Each DIEM corresponds to $1 of Venice AI credit per day.

DIEM can only be minted by staking and locking VVV. Users can use or sell these AI credits. Previously, the DIEM supply target had been fixed at 38,000 tokens for a long time.

Starting from August 3rd, this target will be gradually increased to 40,000 tokens, creating up to 2,000 new DIEM minting capacity for the market. Since each additional DIEM requires locking more staked VVV, this will correspondingly increase the daily supply of AI API credits.

Venice stated that as the DIEM supply approaches the target, the mint rate will gradually increase. This increase in the supply target will provide users with greater minting capacity while maintaining the ecosystem's supply-demand mechanism.

This adjustment shows that Venice is strengthening its token economic feedback loop through the path of "growing demand for AI services → increase in API revenue → continuous burning of VVV → value capture by the ecosystem."