Proposal 2: Venus single token economic proposal (Team)

Venus token economic model proposal (single coin version)

Model purpose

The design purpose of the token economic model is not to maximize the personal benefits of any one of the many protocol participants (including the holder of the project token or the founding team), but to put the long-term development of the protocol first. Only when the Protocol achieves rapid and stable growth and no security incidents occur. Thus, from a long-term perspective, for all participants, especially coin holders, the benefits gained will be maximized.

So I think the goal of the Venus New Economic Model is to create a selling Point where the protocol’s growth, sustainability and safety take priority over individual stakeholder objectives.

Precisely, the design of the economic model should follow two principles:

First, the long-term stability of the protocol takes precedence over any stakeholder, including currency holders.

Any participant, the power and benefits he enjoys, must be as equal as possible to the contribution he made to the protocol.

Key points of the model

  1. Return to simplicity: Venus returns to the single coin model and uses XVS repurchase to destroy VRT;

  2. Equivalence of risks and benefits: The newly built Venus risk vault will guarantee funds in the existing deposit market of Venus. Only the XVS that joins the vault will have the voting rights of the Venus protocol and the dividends of the Venus protocol;

  3. Income repurchase XVS to dividends: the income of the protocol, part of the inflow of the project’s ecological fund is used to support the budget of DAO and the development team, and part of the XVS is regularly repurchased in the secondary market. The repurchased XVS is distributed periodically to the XVS holders in the vault according to the ratio;

Model specific content

1. Back to simplicity, keep a single coin

The following explains the concept of destroying VRT.

The specific operation is divided into the following steps:

  1. Based on the average exchange rate of XVS\VRT in the past 20 days, support VRT users to use VRT to exchange for XVS through smart contracts. The exchanged XVS will be locked in the Venus risk vault for 90 days. During the lock-up period, the XVS that supports this part of the protocol will be obtained. Dividend calculation;
  2. According to the exchange rate benchmark and the number of VRT circulating on the market, unlock the XVS used for the repurchase amount from the XVS that has never been unlocked in advance to deal with the exchange of VRT

Example: Assuming that there are currently 10 billion VRT in the market (10 million XVS*1:1000 airdrops = 10 billion), and the average exchange rate of XVS/VRT in the past 20 days is 1XVS=9000VRT, then 10 billion VRT requires 1.111 million About XVS is exchanged, which is equivalent to about 10% of the current circulation in the market.

To explain, although this approach requires unlocking XVS in advance and increasing the market circulation of XVS, this scheme destroys the already circulating VRT. Moreover, it returns all the rights and interests that may be granted to VRT to XVS, so this part of XVS empowers The return to basics can hedge the new market circulation of XVS.

2.Establish a dividend distribution mechanism for the Venus vault

For the interests of XVS token holders\protocol governors to be deeply tied to the long-term development of Venus, a risk vault should be established in Venus, specifically:

  1. The vault only supports the deposit of XVS or XVS\bnb LP. One of its functions is to use the XVS or LP deposited in it to provide a guarantee for Venus, and to add a protective net for the safety of depositors’ funds, thereby improving The security of Venus attracts more depositors to deposit with confidence;

  2. Only the XVS in the vault has the right to govern and vote to ensure the unity of the long-term benefits of the voting XVS and the Venus;

3.Only the XVS in the vault can capture the profits of Venus. The protocol will distribute the XVS regularly repurchased using the profits of the Venus platform to the XVS users in the vault according to the ratio;

4.When the protocol has a shortfall due to extreme market conditions or security incidents, a certain percentage of the funds in the vault (such as 50% of XVS) need to be paid for it;

  1. it is necessary to allocate a part of the XVS produced and subsidize the deposited XVS for insurance mining until the Venus` dividend is higher and the subsidy can be gradually withdrawn;

6.If the XVS deposited in the vault wants to withdraw, it will take seven days to unlock after the application is initiated. This is to ensure that the XVS that enter the vault is willing to accompany the long-term development of the project;

Summarize the benefits of the vault:

  • It can improve the anti-risk ability of Venus and make TVL bigger
  • Further bind the long-term interests of XVS holders and Venus
  • Improve the liquidity of XVS on dex (support XVS\BNB LP deposit)
  • Increase the amount of XVS lockup

3. Start the repurchase dividend mechanism

Every two weeks, a certain percentage of the funds in the treasury (for example, 70% at the beginning) is used to repurchase XVS in the secondary market. According to the ratio, the repurchased XVS will be distributed to the users in the insurance inventory. It should be noted that the allocated XVS is in the vault, and the withdrawal also requires an unlock operation.

Therefore, the more XVS users deposit in the vault, the more XVS they will receive, which is somewhat similar to the POS, except that under the POS, token holders obtain rewards by providing block verification services. In addition, XVS in the vault accepts rewards by offering insurance to Venus.

The other part of Venus profit is used to maintain ecological operations, such as donating to support the Venus platform ecology of developers and partners, DAO governance and development team budgets, etc.


A single token model is always the best. This has my vote!

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Im not a fan of this proposal at all.

This XVS VRT swap is much undervalued compared to where the price of XVS was at the time of the airdrop. Users would be getting back way less especially compared to where they bought XVS for the airdrop if you calculate the last 20 days when the market was at the bottom.

It also takes away even more time from XVS to grow because you have to give away even more XVS. So I think its a lose lose here, as you are giving away more XVS for free which can be sold, and you are also undervaluing VRT.

Example: Assuming that there are currently 10 billion VRT in the market (10 million XVS*1:1000 airdrops = 10 billion), and the average exchange rate of XVS/VRT in the past 20 days is 1XVS=9000VRT, then 10 billion VRT requires 1.111 million About XVS is exchanged, which is equivalent to about 10% of the current circulation in the market.

I vote NO.


This offer will be a more realistic offer than the other. People prefer to stay away from cluttered systems consisting of a few coins. This offer will refund xvs its true value.

Simple and effective!

However, if proposal 1 passes, then XVS burn must be considered because 30M XVS is too much for market demand.


Agreed, this one will not benefit the current / loyal holders. I am very opposed to this proposal and think we should really go with the other option.


Disagree, I’m totally against this proposal. This is not the true voice of the venus community. Most of the voices here in favour are those who either didn’t get VRT or against VRT due to some specific purpose to divide the community.
VRT must be the part of VENUS eco system as in proposal#1 (Multi coin/token).


Danny and the team made this one hard with voting. Option 2 is the best option for the long haul xvs investor. I think the majority of option 1 voters will not be on board if we reach 50/60 usd. Safety of vault and long run should win. I am here not for the short term but for the long run. So for me the single token option is the best.


proposal 1 is much fairer and more promising for the community and for the protocol. this proposal 2 will benefit xvs whales and cause great harm to those who purchased Xvs for the VRT airdrop. I am totally against this proposal.


The rate for XVS/VRT should be the same as what it was when distributed. If not then most will feel that it’s not good enough and vote with option 1. I am willing to give up my VRT if the rate is 1:1000 like it was. Due to the cascading liquidation events in May I lost most of my XVS and now only have VRT to show for it. If I can get back my XVS at the rate I got my VRT, I believe many will support this option 2 a lot more.

I also think that if you are going to offer XVS for VRT that you do it at the airdrop price BUT… do a burn of the total amount of XVS you used to buy back VRT. So if you bought back 10 Million XVS then you burn an additional 10 million XVS.


I agree here. If option 2 wins, 1:1000 should be the conversion rate as that was close to the value at the time of the airdrop. But even then, if that were agreed, the price of xvs would plummet due to sell pressure so this route doesnt makes sense all around. It should be more about creating new value as opposed to removing value.


I don’t like this at all, making a step backward now that we have VRT already distributed is a huge error, it will also makes big conflicts within the community. VRT is now part of the protocol, there is endless possibilities to be done with it to preserve XVS, please don’t “destroy” it…

i vote NO.

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I vote NO for proposal 2. For all of the reasons mentioned above. Another one to add, operationally this would be a nightmare to have everyone return all of their VRT. Then for sure there would be many who do not do it in time and will discover after the fact. They will be upset with / it will cause a lot of bad sentiment. Also, the community was/is still really excited about VRT. For many, it was their first airdrop and to take that away would not be received well. Don’t destroy VRT.


My vote is a Big NO, first last 20 days VRT value its very wrong… Vrt has been distributed when XVS were at ATH… soo the value of VRT were following it… soo wouldnt make any sense such kind of offer to buyback based on those… If were to buyback any coin this should had happen before we being able to swap any coin for VRT…

Until the attack all were exited about lower Venus imissions and bring VRT vaults and extra apy… and well we got teased with the whitepaper… with soo many usecases for VRT making it not only and extra APY but giving it value at the protocol.

Im sorry guys, but for me makes no sense to follow 1 single coin at all…knowing there are others sucessfull Defi using more then one single coin.


Vote NO (-1) from me - increased XVS distribution into the market - negative pressure will continue; the current debt, vault treasury, payment to team would all come from XVS alone - . This vote addresses current anti risk measures with no real plan of growth and attracting new TVL - users. This is our chance as a community to move venus to a new improved level, this proposal will not achieve that.

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i vote no for this proprosal. because it not fear for XVS holder who hold because airdrop. And make more xvs on market, holder more xvs will get more apy it is best for xvs. vrt is fee gas

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Too simple and not attractive

Well it’s simple, it’s NO. No interest for the small token holders, this only benefits those whales and manipulate again the market…


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This proposal destroy whole Venus. Not benefit for XVS and not Benefit VRT. So kindly close this proposal. I strongly disagree with this.

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It’s a No for this proposal from my side!

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100% I agree. Xvs : VTR 1:1000