I would like to first congratulate all for the amazing and rewarding discussions happening in the forum. Great to see a bright future for Venus and XVS.
XVS is the underlying governance token of the platform and XVS rewards, the incentive mechanism for adoption. XVS utility is limited (so far) to it´s governance and incentive for adoption.
Max Supply of XVS is supposed to happen in the next 4 (current plan) or 8 years (as per current proposal in discussion which I support). Upon full distribution of total supply, the rewards will stop and full adoption will guarantee Venus sustainability.
After rewards end, XVS utility will only be the governance and, more importantly, it will loose it´s monetary incentive. This will lead to a depreciation of the token - as there is no other incentive to HODL XVS for the general users.
Even though very high level, the idea would be to create a venus reserve created through a small spread from Borrow and Supply (just a bank does) - the difference being, that IR is on the XVS benefit and not a centralized entity. Such spread would be collected in the reserve for the rewarding period and burned afterwards (according to a long term plan) for deflationary purposes. Spread after full circulation should still occur and be combined with reserve funds for smooth transition and appreciation of XVS over time.
Something like Bitcoin halving could then be applied where over a 4 year cycle the burning of a % of Venus reserve would be burned. During the inter cycle period, Spread arising from the different assets (e.g. Bitcoin spread) would be converted into XVS at market rates (through e.g. an API to Pancake swap) and burned - as for burning of SXP fees in Swipe wallet.
Idea is very high level and not deep dived but hope you get the point and see the benefit of it or something similar and build on it.