This is already the seventh consecutive reduction: at the start in January 2025, the emission was 14 million tokens per year. By October, only about 14% will remain—86% less than two years ago.
Why: Venice monthly buys back VVV from the market using the platform’s revenue and burns them; the goal is to drive the token into pure deflation, where more tokens are burned than issued. The lower the emission, the closer we get to this point: currently, about 250,000 tokens enter the market each month; after the reduction, it will be roughly 167,000.
A nuance for holders: all emissions go to stakers as yield, so each reduction impacts their percentage. With an annual emission of 2 million tokens, the very meaning of staking now rests almost entirely on the expectation of price growth—and if the platform’s revenue declines, the scheme stops working.
VVV -6% in 24 hours