TL;DR:
- The artificial intelligence infrastructure project Venice has integrated API credit purchases into its automated VVV token buyback and burn system.
- For every 100 dollars invested in platform API credits, 5 dollars will be automatically allocated to acquire VVV on the open market and permanently remove it from circulation.
- The supply target for the ecosystem’s secondary token, DIEM, will be gradually increased from 38,000 to a new limit of 40,000 units.
This Friday, Venice announced a series of strategic updates to Venice tokenomics regarding its VVV and DIEM assets. The information details the implementation of a programmatic buyback and burn mechanism assisted by revenues from its development interface, as well as a staggered increase in the supply of its second token.
Expansion of the deflationary model through API revenue
Venice operates with a structure based on its main token VVV, an ERC-20 asset issued within the Base network. Through the acquisition and escrowing (staking) of this token, participating users obtain yields, unlock exclusive tools from Venice Pro subscriptions, and become enabled for the issuance of DIEM. Prior to this adjustment, the organization used a fraction of commercial revenues derived from Pro, Pro+, and Max plans to support the buyback and destruction of VVV in the secondary market.
The current update expands the capital sources destined for reducing the circulating supply by incorporating purchases of Venice API credits. Following this reform, for every $100 dollars of volume traded in development credits, the platform will automatically process the acquisition of 5 dollars in VVV tokens for their permanent burn.
The protocol developers indicated that the increase in the adoption of API services will directly cause a greater removal of VVV from the crypto-asset market. This new token destruction channel will be monitored through a specific section within the firm’s official burn portal, remaining differentiated from the records linked to subscriptions from mass-consumer users.
Adjustments in the issuance and utility of DIEM The DIEM token acts as the secondary asset of the network and functions as a credit unit for access to artificial intelligence computing models, where each individual token empowers obtaining one dollar per day in inference services within Venice. The minting of DIEM is exclusively restricted to those users who lock their VVV holdings in staking contracts. Prior to the announcement, the maximum supply of the secondary token was permanently fixed at a limit of 38,000 units.
Official information indicates that the supply target for DIEM will be gradually raised until reaching a definitive cap of 40,000 units, which adds an issuance capacity equivalent to 2,000 new tokens to the market environment. This gradual increase in the DIEM supply is scheduled to begin next August 3, 2026, with the platform estimated to reach the projected maximum goal on September 14 of the same year.
