The new proposal by Venus Protocol is expected to cut the circulating supply of XVS by 7% over the next year and open the door for more initiatives.
Venus Emissions Reduction Proposal
Top lending and borrowing protocol, Venus Protocol, put forth a proposal to reduce XVS token emissions by 50%. The proposal also includes a move to eliminate XVS emissions of supply and borrow for the SXP token.
The proposal from the Venus team appeared on the project’s proposal page on Nov. 3. There, the team presented their methodology to show how they expect to reduce emissions amidst the current market conditions so that Venus can continue to dominate the lending and borrowing market on BNB Chain.
With such a dominant position — over 80% of the lending ecosystem on BNB Chain — the team does not predict a significant change in users or platform participation.
“The results of the analysis suggest that cutting emissions will have a minimal impact on user participation and protocol TVL,” according to the proposal.
Reducing emissions will impact the circulating supply of the XVS token, which the team expects will go down by 7% in the next year. The team also predicts this will allow for increased protocol initiatives and help sustain the long-term growth of the XVS token.
And don’t expect a big impact on the already high Annual Percentage Yields (APYs) from Venus.
“Venus has the highest APY offering for BNB, BTC, USDT, BUSD, and USDC. Even when reducing the XVS emissions by 50%,” the proposal adds.
The new proposal must pass a 3-day voting period which has not begun yet. Users and XVS holders are currently discussing the contingencies of the proposal in the comment section. As with all protocols, questions remain and are being addressed in the commentary between the team and token holders.
What is Venus Protocol:
Venus is a decentralized protocol for lending and borrowing that works as an algorithmic money market with a synthetic stablecoin, VAI. Venus Protocol is also decentralized marketplace for lenders and borrowers with borderless stablecoin. Venus is the largest algorithmic money market and synthetic stablecoin protocol on the BNB Chain. The Binance-backed protocol became famous around the Decentralized Finance (DeFi) following their hint of a massive incoming burn by founder Joselito and its Venus Reward Token VRT rewards for $XVS token holders.
Where to Venus Protocol:
Source : bsc.news