AI infrastructure project Venice has announced significant updates to its tokenomics for VVV and DIEM tokens. The new model introduces a programmatic buyback-and-burn mechanism, alongside a gradual increase in the DIEM supply cap from 38,000 to 40,000 tokens. VVV, an ERC-20 token on the Base chain, remains the core asset of Venice's ecosystem, offering users yields, Venice Pro benefits, and the ability to mint DIEM.
The updated mechanism expands the sources for VVV burns by incorporating API credit purchases. For every $100 spent on Venice API credits, $5 will be allocated to buy and burn VVV, in addition to existing buybacks funded by Pro, Pro+, and Max subscriptions. This process will be automated, potentially increasing the amount of VVV removed from circulation as API usage grows. The new API burn mechanism will be tracked separately on Venice's official burn page.
Venice Updates Tokenomics with API Revenue Buyback and Burn Mechanism
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