Diem (DIEM) is a token issued by Venice AI on Base (Ethereum L2), where each DIEM represents a perpetual claim on $1 per day of Venice API compute credit. It is minted by locking staked VVV, the ecosystem's base token, rather than sold directly.
Holders can redeem DIEM for AI inference access on Venice's privacy-focused generative-AI platform, trade it on Base decentralized exchanges such as Aerodrome, or burn it to recover the underlying locked VVV. The DIEM contract was deployed on Base on 2025-08-17.
Diem ties token value to real compute usage: each unit is redeemable for a fixed daily allotment of Venice AI inference credit. This links the token's utility directly to platform adoption rather than to speculative token emissions.
Locking VVV to mint DIEM also lets holders continue earning 80% of normal VVV staking yield during the lock, layering a yield incentive onto the compute-credit claim.
DIEM functions as a utility token rather than a governance token: it is redeemable for Venice AI API compute credit rather than used for on-chain voting.
While locked, holders continue to earn 80% of normal VVV staking yield.
DIEM has no fixed maximum supply; it is dynamically minted by locking staked VVV and burned continuously under an algorithm tied to outstanding DIEM levels.
Because minting requires locking VVV and DIEM is burned when unlocked, net emission tracks demand for compute credit rather than following a fixed inflationary or deflationary schedule.
DIEM launched on 2025-08-17 by direct minting rather than an ICO or airdrop: it is created only by locking staked VVV, with no dedicated token sale.
Diem (DIEM) is deployed on Base, an Ethereum Layer 2 network. As an Ethereum L2, Base processes transactions off Ethereum's base layer and settles them back to Ethereum, inheriting the security of Ethereum's proof-of-stake consensus rather than operating an independent validator set or consensus mechanism of its own.
Venice AI, the issuer of DIEM, is led by CEO Erik Voorhees, previously founder of the ShapeShift crypto exchange, and President/CTO/co-founder Jesse Proudman, based in Seattle. The two met as classmates at the University of Puget Sound in Tacoma.
Diem is issued by Venice AI, branded 'AskVenice,' a privacy-focused generative-AI inference platform offering text, image, and code generation without storing user prompts or responses. The Venice platform launched in May 2024, ahead of either of its tokens.
In July 2026, Venice AI raised $65 million in a Series A led by Dragonfly, with participation from Coinbase Ventures, North Island Ventures, F-Prime Capital, Archetype, Liquid2 Ventures, Morgan Creek, and Founders' Co-op, valuing the company at $1 billion; investors received an 8.98% equity stake plus VVV token grants and warrants.
Venice AI's ecosystem is governed centrally by the company rather than through a DAO or on-chain voting. Every major decision to date, including five separate VVV emission-rate reductions and the decision to launch DIEM, has been made unilaterally by the Venice team.
Marketing materials describe VVV holders as able to 'influence' parameters such as the Target DIEM Supply and new AI model additions, but this influence is advisory rather than binding, and Venice has described itself as 'a company, not a DAO.'
Reported recent developments center on platform growth: Venice AI's revenue was reported to have surpassed $100 million as of 2026-08-18. VVV token burns and continued DIEM expansion were cited as supporting factors.
This followed Venice AI's $65 million Series A financing around 2026-07-01, at which the company reported approximately 3 million active users and about 1.7 million API calls per day. No further named feature releases or version upgrades tied specifically to DIEM were reported in this period.
No CertiK audit or other named third-party smart-contract audit has been completed for the Venice/VVV/DIEM contracts. CertiK's own assessment explicitly states 'No CertiK Audit' while still assigning an overall Skynet score of 83.40 (Grade A), weighed down by low sub-scores for code security, team KYC verification, and a 'High' holder-concentration risk.