Summary
A rising tide raises all ships.
More than 90% of Venus’s income originates on BNB Chain, with Launchpool-driven borrowing accounting for several million dollars of 2024 revenue. As the chain’s flagship lending protocol, responsible for the deepest, most secure BNB markets, Venus is uniquely positioned to amplify BNB’s existing auto-burn narrative and enhance its deflationary impact. Currently, BNB Chain represents the only actively deflationary blockchain ecosystem.
To further support both BNB and Venus’s long-term growth, Venus proposes earmarking 25% of its BNB Chain revenue previously allocated to the Treasury. This represents approximately US $6 million, or roughly 9,900 BNB annually at 2024 run rates, for a transparent BNB burn program. Because this burn is funded solely from protocol cash flow rather than new XVS emissions, it safeguards existing tokenomics while directly and permanently reducing BNB’s circulating supply.
Rationale
As of May 15, 2025, the account 0x…bec has been completely liquidated. This event settled legacy bad debts from 2021 and 2022, previously transferred to this account to mitigate shortfalls within Venus, totaling 320,000 BNB. Consequently, BNB holders have collectively shouldered significant historical costs on behalf of Venus. To address this, we propose introducing a clear and sustainable tokenomic structure: dedicating 25% of BNB Chain revenues for BNB burn until an equitable total is achieved.
Under this revised tokenomic model, Venus becomes a critical and transparent burn engine for BNB, creating a sustainable flywheel effect between borrowing activity and BNB deflation. To reinforce and incentivize this initiative, the BNB Chain Foundation will progressively increase its liquidity provision (LP) into Venus, aligned proportionally to the burn’s progress. Additionally, BNB Chain will regularly communicate both its own Auto-Burn progress and Venus’s contributions, ensuring transparency and engagement among all BNB holders.
Mechanics
First flame cuts supply: Venus Afterburn boosts the engine: Every quarter earned by the Treasury protocol reserves burns BNB, ignites demand and accelerates ecosystem growth beyond escape velocity.
The burn initiates a robust Launchpool-leverage flywheel effect: higher Launchpool APRs encourage increased BNB borrowing on Venus, thereby boosting protocol revenue and further expanding the available burn budget. A stable or appreciating BNB price enhances Launchpool attractiveness, driving sustained borrowing growth. Historically, even a modest 10-point rise in BNB borrowing utilization generates an additional US $2–3 million quarterly, effectively self-funding future burn initiatives.
By converting loan origination and repayments into continuous BNB supply reductions, Venus aligns directly with the long-term interests of BNB holders. Institutional, whales and large-scale borrowers benefit from competitive rates and collateral appreciation due to reduced circulating BNB supply. No other lending platform, on BNB Chain or competing networks, combines deep, audited BNB liquidity markets with a native-token burn commitment, solidifying Venus as the premier “BNB-positive” leverage platform.
The risk is carefully controlled with a firm 25% revenue ceiling, automated via protocol converters, and will be reviewed quarterly with the aim of protecting Venus Treasury economics should Venus revenue experience any significant decrement. A Venus Improvement Proposal (VIP), comprehensive audit, and community snapshot vote will precede implementation, targeting the launch for Q3 2025 revenue, giving the community a short, clear path to turn Venus activity into a compounding source of BNB deflation and protocol growth.
Benefits to BNB
BNB booster shot: Venus Afterburn, each block earned means another burn, propelling both value and protocol sustainability to new heights.
Long-term strategic alignment with BNB holders, enhancing intrinsic asset value and incentivizing sustained liquidity and participation on Venus, particularly during Launchpools.
“Burn-and-Earn” Gamification: Collaborating closely with the BNB Chain team, Venus will produce monthly leaderboards highlighting top contributors and markets that achieve burn goals, transforming deflation into community engagement.
Strategic Liquidity Support: BNB Chain Foundation will progressively add liquidity into Venus, further solidifying its flagship position within the ecosystem.
Benefits to XVS
Strengthened Token Utility & Value Proposition
As Venus drives part of protocol revenue into a recurring BNB burn, XVS holders benefit from reinforced protocol utility and visibility. With Venus becoming a central BNB deflation engine, XVS is inherently linked to a positive-sum ecosystem that rewards lending and borrowing activity.
No Emissions Dilution = Pure Yield Model
This initiative channels revenue toward growth and sustainability without requiring new XVS emissions on BNB Chain. That protects XVS holders from inflation while increasing long-term capital efficiency, preserving value while supporting aggressive ecosystem expansion.
Governance Empowerment & Institutional Confidence
The burn mechanism will only proceed with a full Venus Improvement Proposal (VIP), audit, and snapshot vote. This process empowers XVS holders with direct influence over major protocol decisions, reinforcing the value of holding and participating in governance. In turn, institutional and whale participants gain greater confidence in a transparent and resilient governance system.
Liquidity Flywheel Drives XVS Activity
As BNB Chain boosts its liquidity provisioning to Venus, deeper pools and higher borrowing demand enhance platform fees and TVL. This increased economic activity strengthens XVS role as the governance and strategic token behind a thriving lending ecosystem.
Enhanced Market Positioning and Visibility
XVS directly benefits from Venus reinforced branding as the “BNB-positive leverage hub.” With aggressive promotional support from BNB Chain and cross-ecosystem campaigns, XVS gains broader recognition, deeper listings, and increased trading volume as Venus activity becomes synonymous with BNB deflation.
Ecosystem Stickiness & User Retention
“Burn-and-Earn” gamification, leaderboards, and Launchpool incentives turn protocol usage into a reward cycle, driving long-term engagement. As more users lock into Venus for deflationary benefits and boosted APRs, the stickiness of the platform grows, anchored by XVS governance and utility.
No competing lending platform currently offers comparable deep liquidity and audited markets paired with an explicit native-token burn commitment, reinforcing Venus’s position as the preferred leverage platform within the BNB ecosystem. A transparent governance process, VIP draft, audit, and snapshot vote, will ensure a fair and open implementation, This model transforms everyday lending activity into a powerful engine for BNB deflation and protocol growth, while reinforcing XVS value through emissions-free expansion, increasing demand for governance participation, and aligning protocol health with token holders incentives.
Initiative Stack
Following adoption of the BNB After Burn by the community, a set of promotional activities are proposed to various stakeholders and will be pending execution once agreement is achieved for each one.
Venus, BNB Chain, and ecosystem partners would jointly amplify each month’s “Afterburn” results, leveraging flagship platforms such as PancakeSwap for cross-promotions. Additional engagement tactics include leaderboards, interactive AMAs, and strategic burn challenges. Coordinated content releases, live community sessions, and interactive widgets will consistently spotlight Venus’s deflationary impact, driving user acquisition, engaging existing communities, and incentivizing new dApps to participate in the burn-positive movement. This comprehensive strategy ensures each marketing touchpoint actively contributes to reinforcing the BNB deflation narrative.
New Revenue Boosting
BNB After Burn sets the stage for Venus and XVS, the protocol with DeFi lending’s most potent product-market fit per $ of TVL, to align each of its upcoming revenue drivers with the largest and most important community in DeFi. Launching this proposal in anticipation of other impending opportunities such as advanced treasury management, V5 and VAI 2.0 ensures each coming product launch at Venus is supported and amplified at a new level by both XVS and BNB communities joining forces.
Conclusion
The Venus Afterburn initiative delivers a dual-impact flywheel: for BNB holders, it introduces a sustainable, transparent, and protocol-funded burn mechanism that enhances scarcity and long-term value, turning borrowing demand into tangible deflation. For XVS holders, it strengthens token utility, preserves tokenomics with zero new emissions, deepens protocol engagement, and reinforces Venus’s position as the leading lending platform on BNB Chain. Together, this aligns both communities in a shared growth trajectory powered by real yield, governance transparency, and ecosystem-wide momentum.
