XVS Vault Emissions Adjustment

Proposals
1

Summary

This proposal updates the XVS emissions strategy for Q4 2025 Vault Rewards, continuing emissions on BNB Chain while pausing them on Ethereum, Arbitrum, ZKSync, and Unichain.

Following the adjustments to non-BNB chain emissions in July, the objective is to align incentives where they are most impactful and ensure XVS rewards are contributing to long-term protocol growth and sustainability.

Cross-Chain XVS Vault Review

Venus has expanded XVS across multiple chains, with emissions introduced to support adoption and staking. While these incentives are an important growth tool, it is essential to periodically evaluate their effectiveness and redeploy them where they create the most value.

  • BNB Chain – The XVS Vault continues to perform strongly, with $8.2M staked (a 15.5% increase from $7.1M at the beginning of the year). To support this momentum, we propose to maintain the current base reward of 308.7 XVS/day (28,092 XVS per quarter).
  • Other chains – XVS adoption and staking have been limited so far. To concentrate incentives where they deliver the greatest benefit, we propose to pause fixed emissions on Ethereum, Arbitrum, ZKSync, and Unichain. Vault Rewards on these chains will continue to be funded through the 20% income allocation defined in Tokenomics.

This update is projected to save 15,594 XVS (~$92K) in Q4, while providing flexibility to reallocate incentives as new opportunities emerge.

A wider strategic review of incentive structures is underway, with the goal of ensuring treasury funds and emissions are deployed to grow TVL, increase revenue, and enhance Venus’ position across all supported chains.

Proposed XVS Vault Emissions (Q4 2025)

Chain Proposed XVS Vault Emissions for Q4 2025
BNB Chain Maintain 28,092 XVS ($165,741) per quarter = 308.7 XVS/day
Ethereum Reduce rate from 10,524 ($62,092) to 0 XVS per quarter
Arbitrum One Reduce speed from 2,205 ($13,010) to 0 XVS per quarter
ZKSync Era Reduce speed from 5,148 ($34,390) to 0 XVS per quarter
Unichain Reduce speed from 600 ($3,540) to 0 XVS per quarter

Resources

Previous XVS Vault Emissions Update
XVS Emissions Adjustments on non-BNB markets

4 Likes
2

I like this proposal because it is aimed at BSC and it will increase the effectiveness of vault there

2 Likes
3

Overall I agree to stop any expansion of Xvs supply

So it’s a big Yes

But we should really focus more to use Treasury instead of Emissions. We need community confidence on Xvs in the uncertainty of current situations.

1 Like
4

I completely agree with conducting this analysis and allocating incentives to the BNB Chain, as we are seeing a greater impact there compared to the other networks where the protocol has been implemented. I believe that as we move forward, it will be possible to assess whether it is appropriate to reinstate rewards in the vaults of the other networks. You have my full support.

1 Like
5

agreed, we need less emissions, but I believe we should move towards a full self-sustained model in the future where the vault rewards come from buybacks alone on all chains including bnb chain.

1 Like
6

I agree with the proposal and with Omar’s suggestion that, ideally, we should transition to buybacks only.

Would it be possible to create a dashboard displaying XVS burn/inflation data, along with accumulated revenue for buybacks?

For new users, it’s difficult to determine whether a 13% vault stake is good or bad without understanding how many tokens are being released. Additionally, much of the information about unlocks and token amounts is from the launchpool era and is outdated. This could confuse people - if all tokens are unlocked, why isn’t the circulating supply equal to the max supply etc. It adds unnecessary confusion.

Something like a a simplified version of https://www.bnbburn.info/ would be good for marketing too.

2 Likes