It was 2 years ago today that we launched Venice. So much has changed since then, but not the principles on which we're building it. The separation of mind and state remain just as important. "Search the world’s information, have rich conversations, analyze documents, create interesting images and art of any style at the push of a button. Various AI services offer these things, so what makes Venice unique? • Venice doesn’t spy on you • Venice doesn’t censor the AI In other words, Venice is private, and Venice is permissionless." moneyandstate.com/blog/the-s…

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.