Venice

$VVV's primary holder utility is staking. By staking, holders receive access to Venice's AI inference, with free usage allocated proportionally to their share of the total $sVVV stake.
$VVV stakers can also mint $DIEM — a token that provides $1/day of AI inference in perpetuity. This converts volatile, stake-based inference access into a predictable one. Minting $DIEM requires locking a specific amount of $sVVV, and unlocking that $sVVV requires burning the previously minted $DIEM.
In addition, Venice uses a portion of inference payments to buy back and burn $VVV, creating indirect value accrual for all $VVV holders, regardless of staking.

Mechanism map

Staking to access the inference
Buyback and burn

Token functions

Staking to access the inference

Staking to access the inference is the core utility of $VVV. To activate it $VVV must be staked.

VVV stakers receive (a) a pro-rata share of Venice's free API inference capacity, so $VVV acts as a kind of discount token for the product (b) 80–100% of programmed VVV emissions.

These emissions serve a dual economic function: (1) a yield stream that can be interpreted as a form of cashflow to stakers; (2) an increase in the staker's relative share of total supply, expanding their future claim on free inference capacity versus non-stakers.

The $DIEM minting option is a subset of free inference access function, tokenizing the determined free amount of usage and allowing it to be used as an asset in DeFi.

Yield-Bearing Staking

The Yield-Bearing Staking Token sub-VCM is structured around staking and the depreciation-offsetting proportional allocation of a part of the total regular emissions to staked token holders. THe value is captured by additionally incentivising token staking by diminishing the loss incurred by price volatility whilst the tokens are locked.

This model allows stakers to either utilize their allocated API access or trade it.

Value drivers

Transferability Restriction

represents staking $VVV for activating its utility functions

Reflects the risk derived from staking VVV tokens in a staking contract to get a corresponding share of free API calls. The risk is derived in part from natural volatility and in part - from the consistent inflation rate that continuously depreciates staked tokens.

[7] = ƒ(staking_period, reward_rate, amount_staked, price_at_staking)

staking_period — is the length of period set up by the user
reward_rate — is the amount of tokens per second awarded to all users for staking (i.e., the rate of emission)
amount_staked — is the number of tokens staked up by the user
price_at_staking — is the price of the staked token position when staking them. It defines the staked value together with the staked amount

Venice

Mechanism map

Token functions

Staking to access the inference

Yield-Bearing Staking

Transferability Restriction

Value capture investment profile

$VVV token design Insights

Cashflow

Stake-Based Discount

Transferability Restriction

Access

Buyback and burn

Cashflow

Conditional Action

Cashflow