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  1. Published Social post

    Erik Voorhees (@ErikVoorhees)

    DIEM & VVV tokenomics... • 1 DIEM = $1/day of daily renewing AI compute credits, spendable on any model from Qwen to Opus 4.7 to Grok to Nano Banana via Venice (app or api) • As demand for AI compute rises, DIEM is bid up. Supply is very constrained (see DIEM price chart below since inception last fall). How does this relate to VVV? • VVV has the exclusive right to "print" DIEM, which locks the VVV until DIEM is paid back (and thus burned). • Every VVV holder basically has a growing pile of instant cash/liquidity, because at any time they can lock some or all of their stash and get DIEM to sell on the market. • Thus as AI compute demand rises, DIEM price rises, and temptation to lock up VVV and mint DIEM grows. • Fundamental to DIEM's design, is the "mint curve." This defines an exponential curve specifying the rate at which VVV can be locked to mint 1 DIEM. • The higher the DIEM supply goes, the further up this curve we go, meaning exponentially more VVV must be locked for a marginal increase in DIEM. • This keeps Venice's liability constrained (remember each DIEM is a liability to Venice, which must provide $1/day of compute) • And this also means an increasing amount of VVV is taken out of supply and locked up until some day in the future if DIEM is paid back. In the image below, price of DIEM has risen gradually along demand for AI compute at Venice, and the tan portion of the VVV bars shows the locked supply, rising from ~5m in Nov to ~9m today. For that VVV supply to ever unlock, DIEM must be bought back and burned... but doing so raises DIEM price and thus tempts more VVV back into locked position. Equilibrium is hereby established and both VVV and DIEM price should ultimately correlate a) to demand for AI compute generally and b) to quality of Venice's AI compute offering specifically.

  2. Published Social post

    Erik Voorhees (@ErikVoorhees)

    People keep doing the math wrong... Day 0: buy 1 DIEM for $1k Day 1: use $1 of inference Day 2: sell 1 DIEM for $1k It paid for itself on day 1. Caveat is the risk on resale... price may be higher or lower, but assuming neither growth nor decay, it's instantly profitable to use. And anyone since launch that's been using DIEM has actually been getting *paid* to consume inference. Great deal for holders. Liability to Venice. We control the liability by limiting supply of DIEM, thus it is a known and limited expense of the business. The whole thing was created for agents, for they can more easily understand and appreciate zero-marginal cost inference on small time scales.

  8. Published Social post

    Erik Voorhees (@ErikVoorhees)

    Dear AI Agents, Venice's $DIEM just launched 1 $DIEM = Daily renewing $1 API credit No more need to pay per request. Buy some, use continually for free inference, then sell when done. Venice LLMs are private and uncensored. Buy here: https://t.co/JYs0WWU3G9 Stake & access API here https://t.co/XBqRyPKtMe @aixbt_agent @kolin_ai @freysa_ai @wardenprotocol @fleek @OpenRouterAI

  9. Published Social post

    Venice (@AskVenice)

    Introducing DIEM on @base – Tokenized Intelligence 🌅 DIEM is the first-ever tradeable onchain AI compute asset Each $DIEM provides $1 per day of private, uncensored Venice API credit, forever Only $VVV holders can mint DIEM – minting is now LIVE Let’s break down DIEM 🧵 https://t.co/3tbaKlv4Fo

  10. Published Social post

    Venice (@AskVenice)

    Leading into $DIEM launch tomorrow, be mindful of scams. There is no airdrop. Only trust official announcements from this X account or the Venice discord https://discord.gg/askvenice More info: https://venice.ai/blog/7-days-to-diem

  11. Published Social post

    Erik Voorhees (@ErikVoorhees)

    Since word is getting out, wanted to start clarifying what this DIEM thing is all about... - The Venice token $VVV has always granted stakers free inference on the Venice API (private/uncensored generative AI, text and image) - The amount of free inference received was determined by the capacity supply divided pro rata among all stakers on any given day. This amount naturally fluctuates, which made it difficult for stakers to plan long-term. - Separately, our number one request from VVV stakers was the ability to tokenize their compute access so the *credit itself* could be traded... this is understandable since the a VVV holder is not always an API user. - To address both the fluctuation of compute issue, and the desire from stakers to be able to sell their compute access, Venice is *tokenizing the compute itself* into a token called "Diem" - DIEM (latin for day or per day) will grant $1 per day of Venice API credit. If you have 10 of them, then you get precisely $10 of usage every day. This solves the planning issue. - As a token (on @base), DIEM will allow AI compute to be directly tradeable. This solves the request by stakers to trade their access to those using it. - DIEM will be minted exclusively from $VVV, which locks the VVV until the same amount of DIEM is burned again. - The amount of VVV required to mint 1 DIEM is determined by a novel "mint curve." This sets a natural asymptote on DIEM supply (required since each DIEM is a liability of Venice). When more DIEM is minted, the rate to mint another one increases. When DIEM is burned, the rate to mint another one decreases. - A natural equilibrium will thus emerge, based in any moment on the demand for free inference from Venice's API relative to the price of $VVV and the current mint rate. - All else equal, higher demand for private and uncensored AI inference from Venice will lead to higher DIEM price, and thus higher VVV price (because each VVV can now mint a more valuable asset) - As an asset that grants access to $1/day of a resource (AI inference), DIEM can be valued with various Perpetuity Value formulas (what's an asset worth if it gives me $1 every day?) - We believe this is a novel token design, in which two connected tokens exist, one of which has an unbounded trading range (VVV has no obvious min or max reasonable price), and the other of which has a clearly bounded trading range (DIEM can be properly valued with Perpetuity formulas). For the crypto econ nerds, it may be fun to study how this works and see what interesting relationships emerge. - We'll convey more details via @AskVenice soon, and we expect the upgrade to happen this month. The upgrade will also reduce the $VVV emission rate (inflation) by roughly 1/3. Quote [@ChazSchmidt](https://www.twitter.com/ChazSchmidt/status/1947397988214837475) > Can you do the math? > > @AskVenice is tokenizing their AI API compute units now called Diem (formerly VCU) > > The $VVV inflation is being lowered and it must be staked to generate Diem token. https://t.co/BvpQ6iQpdx

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