Deep Dive
1. Video Generation & V2 Preview (October 2025)
Overview: Venice V2 introduces text/image-to-video tools using models like Sora 2 and Google’s Veo3, alongside a credit system balancing scalability and user access.
A new credit economy ties $1 to 100 credits, with DIEM tokens granting 100 credits daily. Open-source models are prioritized, but third-party integrations (e.g., Sora 2) involve anonymized data sharing, disclosed in the UI. Beta testing began in October, with a full rollout planned by December 2025.
What this means: This is bullish for VVV because it expands Venice’s AI product suite, attracting creators needing uncensored video tools. However, reliance on external models introduces partial privacy trade-offs. (Source)
2. Buyback & Burn Integration (October 2025)
Overview: A portion of Venice’s revenue now funds monthly VVV buybacks and burns, directly linking platform growth to token scarcity. Annual emissions were cut from 10M to 8M VVV.
The update aims to transition VVV into a deflationary asset, with burns accelerating as Venice’s retail business scales. The team confirmed on-chain buybacks since launch.
What this means: This is bullish for VVV because reduced supply and increased demand from burns could counterbalance inflation, especially as adoption grows. (Source)
3. DIEM Token Launch (August 2025)
Overview: DIEM, an ERC-20 token on Base, allows stakers to mint perpetual $1/day API credits. Minting DIEM requires locking staked VVV (sVVV), which still earns 80% of staking yields.
The mint rate adjusts algorithmically to prevent oversupply, and DIEM can be traded, staked, or burned to reclaim sVVV. This update reduced VVV emissions from 14M to 10M annually.
What this means: This is neutral for VVV—it adds utility by monetizing unused API capacity but risks sell pressure if users prioritize short-term DIEM gains over long-term VVV holding. (Source)
4. API & App Upgrades (July 2025)
Overview: July’s updates included in-app image editing (via Flux Kontext DEV), a social feed for sharing AI-generated content, and upgraded models like Venice Uncensored v1.1.
API improvements added endpoints for image inpainting and key management, while deprecating older coding models (Qwen Coder, DeepSeek Coder).
What this means: This is bullish for VVV because enhanced usability and community features could drive higher platform engagement and staking demand. (Source)
Conclusion
Venice Token’s codebase is evolving to deepen integration between its AI platform and tokenomics, prioritizing deflation (burns, emission cuts) and vertical utility (DIEM, video tools). While recent updates strengthen its value proposition, how will Venice balance privacy concerns with third-party model dependencies in V2?