Venice upgrade tokenomics: API revenue will trigger VVV buyback and burn, DIEM supply raised to 40,000

Odaily AI infrastructure project Venice has announced an update to its VVV and DIEM tokenomics model, 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 purchasing and staking VVV, users can earn rewards, unlock Venice Pro benefits, and mint DIEM. Previously, a portion of platform revenue was used for market buybacks and burning VVV.

This update first expands the sources for VVV burns. Previously, Venice had implemented an automated VVV buyback and burn mechanism through Pro, Pro+, and Max subscription revenue. Now, this mechanism will cover API credit purchases: for every $100 a user spends on Venice API credits, $5 will be used to purchase and burn VVV. This process will be executed automatically; as API usage grows, more VVV will be removed from circulation.

Venice stated that the new 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 model credits, with each DIEM corresponding to $1 in daily Venice AI credit.

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

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

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

This adjustment shows that Venice is strengthening its tokenomics circular economy through the path of 'growth in AI service demand → increase in API revenue → continuous VVV burns → ecosystem value capture'.