VVV Annual issuance reduced by 25%: Can supply tightening support this rally?

Venice officially announces that starting February 10th, the annual issuance of VVV tokens will be reduced from 8 million to 6 million, a decrease of 25%. This is a significant adjustment to the project’s tokenomics and a major catalyst for the recent continuous rise in VVV price. According to the latest data, VVV has increased by 84.25% over the past 30 days, and market expectations regarding this policy change are gradually being digested.

The Core Significance of Improved Inflation Expectations

Direct Impact on the Supply Side

What does a 25% reduction in VVV’s annual issuance mean? Simply put, it means the new supply added each year has decreased by a quarter. According to relevant information, VVV’s current circulating supply is 43.22 million tokens, with a total supply of 77.8 million tokens. The annual issuance drops from 8 million to 6 million, which means the proportion of new supply relative to circulating supply decreases from approximately 18.5% to 13.9%, significantly easing inflationary pressure.

This is beneficial for holders. Improved inflation expectations imply:

• Reduced pressure from new supply on prices
• Increased scarcity of existing tokens
• Lower dilution risk for long-term holders

Market’s Actual Response

Data speaks for itself. According to relevant information, VVV’s market performance following the policy announcement is as follows:

Notably, VVV’s 24-hour trading volume ($3.98 million) has approached 4.5% of its market cap ($88.54 million), demonstrating considerable market activity for a project with a total market cap below $100 million. Relevant information indicates that community sentiment is approximately 90% positive, suggesting high market approval of this policy adjustment.

Considerations Behind the Tokenomics Adjustment

Why now?

The VVV project only launched trading on January 28, 2025, less than a year ago. Adjusting the issuance at this stage reflects the project’s proactive decision to optimize after observing market reactions. This is not a passive response to market pressure but an active effort to improve tokenomics.

Sustainability of the Adjustment

Personal opinion: The key to this adjustment lies in its sustainability. A 25% reduction is quite significant, and market reactions have been enthusiastic. However, two aspects need ongoing attention:

• Whether the project team will continue to optimize the issuance mechanism (e.g., introducing burn mechanisms, buybacks)
• How long-term community support for this policy remains

Possible Future Directions

Based on current information, VVV may face several scenarios:

• Short-term: The positive effects of improved inflation expectations are already partly reflected in the price (7-day increase of 25.93%), but the market is still digesting this news, leaving room for further upward movement
• Medium-term: The key will be whether the market maintains enthusiasm after the policy officially takes effect on February 10th or if profit-taking occurs
• Long-term: Depends on whether the project’s fundamentals (user growth, ecosystem development, etc.) can support valuation increases driven by improved inflation expectations

Summary

A 25% reduction in VVV’s annual issuance is a clear positive signal, directly improving the project’s inflation outlook. Market reactions show that investors have responded positively to this policy change—the 84.25% increase over the past 30 days reflects this expectation.

However, maintaining rationality is essential: supply tightening is one factor supporting prices but not the whole picture. The project’s long-term value also depends on ecosystem development, user growth, and other fundamentals. Amid the current high community enthusiasm, there is recognition of policy optimization but also inevitable market FOMO. The key is to observe whether this policy adjustment can sustainably support the project’s valuation in the long run.