Venice adjusts its tokenomics model: introduces an API revenue buyback-and-burn mechanism, raising the DIEM supply cap to 40k tokens

PANews July 18, 2024, AI infrastructure project Venice 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 thousand to 40 thousand. Venice said 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, part of the platform revenue would be used for market buyback and burn of VVV. Venice said the newly added API burn mechanism will be tracked separately on the official burn page, with the burn records from subscription revenue shown distinctly.

This update first expands the sources of VVV burns. Previously, Venice had already carried out an automated VVV buyback-and-burn mechanism through Pro, Pro+, and Max subscription revenue. Now, the mechanism will also cover purchases of API credit limits: for every $100 purchased in Venice API credits, $5 will be used to buy and burn VVV. This process will run automatically, and as API usage grows, more VVV will be removed from circulation.