Two pieces of news, apparently far apart, tell the same story. On one side Venice adds capability: Flux 3 Image, Black Forest Labs’ third-generation image model, is now available on the platform in anonymised form. On the other it tightens its belt on the token: since 1 October the cut in annual VVV emissions from 3 to 2 million is fully in force.

Photorealistic images, leaving no traces

Flux 3 Image brings photorealistic rendering, text handling inside the image that finally holds up, and native output up to 4K. On Venice it runs in the anonymised tier: prompts are not retained, not profiled and not used for training, and pricing is per image (from 0.06 dollars for the 1K format) rather than by subscription. It should be said precisely: this is privacy with respect to retention, not a cryptographic seal. The model is anonymised, not isolated in a hardware enclave.

The emissions cut is now complete

On the economic side, the path announced in July with the August addendum has closed exactly as planned: a first reduction of 500,000 VVV on 1 September and the second on 1 October, for a total of 2 million VVV a year. Alongside this, the programmatic burn stays active — 5 dollars for every 100 spent on API credits buys and burns VVV on the secondary market — adding to the burns already fuelled by subscriptions. According to platform data, cumulatively more than 42% of the 100 million genesis supply has been removed.

It is not an isolated move: it is the same logic as DIEM, the credit obtained by locking VVV that is worth 1 dollar of API credit per day, with a supply cap raised from 38,000 to 40,000 units in four steps up to 14 September. More DIEM means more VVV locked.

The market rewards the narrative, not yet the flow

On the market, the picture is cooler than the narrative suggests. VVV trades around 28 dollars, down more than 5% in 24 hours, with a market capitalisation of about 1.35 billion and a protocol TVL close to 2 billion. The real push came from the weekly report of a third-party analysis account, which flags credit burns at a channel high and sign-ups up 20%, and above all from Grayscale’s analysis: in September the AI crypto sector gained 54% against 24% for the wider market, with VVV cited at +70%.

The point is that Venice’s thesis — token as capital, credits as product, burn as the bridge between the two — is starting to have numbers, not just slogans. The open question remains one: is deflation enough on its own, or does real usage need to grow at the same pace as expectations?

Verified sources: Venice (official page for the Flux 3 Image model, accessed 2026-10-06); Venice API Docs — Image Models (docs.venice.ai, 2026-10-06); Venice official blog “Tokenomics Update: Credit Burns and DIEM Supply Expansion” (17 July 2026, with addendum 5 August); CoinMarketCap Top Stories on VVV (2026-10-05/06); Cryptopolitan — “Venice VVV token hits record $34” (2026); Grayscale via CryptoTimes, TokenPost and Bitcoin.com News — “AI crypto sector +54% in September, VVV +70%” (2026-10-02); public posts @AskVenice (2026-10-05) and @venicestats W40 (2026-10-05).