Venice has updated the tokenomics of VVV and DIEM, adding a new programmatic buyback-and-burn mechanism and lifting DIEM’s target supply from 38,000 to 40,000.
According to Venice, VVV is the core asset of its ecosystem and an ERC-20 token issued on Base. Users who buy and stake VVV can earn yield, unlock Venice Pro benefits, and use the token to mint DIEM.
API credit purchases now feed VVV buybacks and burns
Before this change, part of the platform’s revenue was already used to buy back and burn VVV from the market. Venice said it had been running automated VVV buybacks and burns using revenue from Pro, Pro+, and Max subscriptions.
The updated model expands that mechanism to API credit purchases. Under the new rule, whenever a user buys $100 of Venice API credits, $5 will be automatically used to purchase and burn VVV. Venice said that as API usage rises, more VVV will be removed from circulating supply.
The company added that burns tied to API usage will be tracked separately on its official burn page, distinct from burns generated through subscription revenue.
DIEM supply target set to rise starting Aug. 3
Venice is also changing the target supply for DIEM. DIEM is the second token in the Venice ecosystem and is used to provide access to AI model credits. Each DIEM corresponds to $1 in Venice AI credits per day.
DIEM can only be minted by staking and locking VVV. Users can either use those AI credits themselves or sell them. Venice said the DIEM target supply had long been fixed at 38,000 tokens.
Starting Aug. 3, that target will gradually increase to 40,000, creating room for up to 2,000 additional DIEM to be minted. Because each newly minted DIEM requires more staked VVV to be locked, the change will also expand the daily supply of AI API credits.
Mint rate will rise as supply nears the target
Venice said the mint rate will gradually increase as DIEM supply moves closer to the target. The higher ceiling is intended to give users more room to mint while keeping the ecosystem’s supply-and-demand mechanism intact.
Venice described the update as a closed loop in which growing demand for AI services leads to higher API revenue, which then drives continued VVV burns and strengthens value capture inside the ecosystem.