XVS Emissions Strategy Update

This proposal updates the XVS emissions strategy for Q3 by maintaining emissions on BNB Chain while pausing emissions on Ethereum, Arbitrum, ZKSync, and Unichain. The goal is to review and optimize the allocation of XVS incentives to drive sustainable protocol activity growth.

Cross-Chain Emissions Review

Venus has expanded to multiple chains, accompanied by emissions to help bootstrap activity. While emissions remain a powerful tool for incentivizing usage and growth, it's important to regularly assess their impact and adapt based on performance.

This proposal maintains the current emissions structure on BNB Chain, where the majority of protocol activity and revenue is concentrated, and where the XVS market continues to see strong supplier participation. The current emission rate of 675 XVS/month (2,025 XVS/quarter) will remain unchanged and fully allocated to suppliers.

On Ethereum, Arbitrum, ZKSync, and Unichain, XVS emissions have not yet driven the level of user engagement and lending activity expected. As a result, we propose to pause all emissions on these chains to enable a full review of the current mechanisms and explore alternative strategies that may generate higher impact.

This pause is projected to generate approximately $220,000 in savings for Q3, which can be redeployed into high-impact initiatives in the near future. A strategic reassessment will be conducted during this period to optimize incentive structures going forward, ensuring that future emissions are strategically deployed to grow TVL, increase protocol revenue and enhance the value proposition of Venus across chains.

Chain	Proposed Emissions (per quarter)
BNB Chain	Maintain 2,025 XVS ($14,730) per quarter on XVS market
Ethereum	Reduce speed from 12,141 ($81,100) to 0 XVS/month
Arbitrum One	Reduce speed from 3,702 ($24,730) to 0 XVS/month
ZKSync Era	Reduce speed from 5,148 ($34,390) to 0 XVS/month
Unichain	Reduce speed from 12,000 ($81,160) to 0 XVS/month