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

Odaily reports that 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 raising the DIEM supply target from 38,000 to 40,000.

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 burning. Previously, Venice had already 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 of Venice API credits purchased by users, $5 will be used to buy and burn VVV. This process will be automated, and as API usage grows, more VVV will be removed from circulation.

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

Concurrently, Venice will adjust the DIEM supply target. DIEM is a second-generation token in the Venice ecosystem, used to provide AI model access credits. Each DIEM corresponds to $1 in 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 for an extended period.

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

Venice stated that as the DIEM supply approaches its 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 balance.

This adjustment indicates that Venice is strengthening its tokenomic flywheel through the path of "growing demand for AI services → increased API revenue → continuous VVV burning → ecosystem value capture."