Proposal: BNB Afterburn – Allocating 25% of Venus BNB Chain Revenue to BNB Burn.

Background

Venus is the flagship lending protocol on BNB Chain, driving deep, secure markets for BNB and generating significant protocol revenue. Over 90% of Venus’s income comes from BNB Chain activity, with nearly $6 million (approximately 9,900 BNB) earned in 2024.

Summary

This proposal seeks to allocate 25% of BNB Chain revenue, previously earmarked for the Venus Treasury, to a transparent, on-chain BNB burn program.

• No new XVS emissions required. The burn is funded entirely by protocol cash flow.
• Existing Venus Prime program and XVS Buybacks are not affected
• Estimated annual burn: ~9,900 BNB (approximately $6 million at 2024 run rates).

Rationale

• Historical Accounting: 320,000 BNB in legacy bad debts were covered by BNB holders on behalf of Venus.
• Deflationary Impact: Enhances BNB’s existing auto-burn narrative and overall deflationary ecosystem.
• Sustainable Flywheel: Launchpool-driven borrowing increases the burn budget, creating a feedback loop of revenue growth and deflation.

Proposed Mechanics

Quarterly Burn Execution

• 25% of Venus protocol revenues allocated to the treasury on BNB Chain will be converted to BNB and sent to the official burn address.

Launchpool Leverage

• Higher Launchpool APRs encourage increased BNB borrowing on Venus thereby boosting protocol revenue and further expanding the available burn budget.

Automated Process

• Protocol converters will handle revenue allocation and execution of the burn.

Review & Oversight

• The mechanism will be reviewed quarterly. A Venus Improvement Proposal (VIP) will precede implementation, targeting Q3 2025 revenue.

Benefits

To BNB Holders

• A sustainable, transparent burn engine that amplifies BNB scarcity.
• “Burn-and-Earn” gamification with community leaderboards.
• Strategic liquidity support from the BNB Chain Foundation.

To XVS Holders

• No emission dilution – a pure yield model from protocol revenue.
• Strengthened token utility and enhanced governance empowerment.
• Increased institutional confidence through a transparent, audited process.
• Enhanced market positioning as the premier BNB-positive leverage platform.

Conclusion

The BNB Afterburn proposal transforms Venus into a transparent, protocol-funded engine for BNB deflation. This initiative aligns the long-term interests of both BNB and XVS holders by dedicating recurring revenue to a permanent reduction in BNB supply. The result is enhanced scarcity, increased borrowing activity, and strengthened strategic positioning for Venus on BNB Chain.

Looking ahead, the Vanguard Team will also publish and propose a new XVS Vesting & Burning mechanism, a companion initiative designed to streamline token vesting schedules and introduce a targeted XVS burn mechanism.

Full details on V5.1 will be published soon, further reinforcing our commitment to disciplined tokenomics and long-term value creation for XVS holders.