The Venus Protocol looks set to approve the reimbursement of Venus Labs for work it did during the second half of 2024, totaling $1.7 million, according to a governance discussion on Snapshot. The funding represents an increase from the $1.49 million the DAO paid to the development group in the first half of the year.
“Following the successful execution of multiple deployments, feature integrations and protocol enhancements throughout 2024 contributing to a more than doubling of protocol revenue, a new funding proposal is required for to reimburse development and maintenance of Venus from the second half of 2024,” Venus Labs wrote in its proposal on Monday.
The vote is set to close Tuesday afternoon, and has yet to receive a vote against the plan.
In its statement, Venus Labs noted the community “executed 92 [Venus Improvement Proposals] to enhance protocol parameters, markets and features” of the Binance Smart Chain-based lending platform and synthetic stablecoin protocol.
This includes “omnichain” deployments on EVM-compatible chains including Arbitrum, Base, Optimism and ZKSync, the rollout of new markets, the introduction of a new “2-Kink interest rate model” and other improvements like oracle upgrades and risk parameter adjustments. Venus also began preparing for an “impending BNB hard fork.”
“With Venus V5 on the horizon, major advancements in omnichain governance and expansions into new markets and chains, the protocol is entering a new era,” the team wrote. “This proposal is not just a reimbursement request but an investment in the future of DeFi, where Venus stands at the forefront.”
If approved, 5% of the payout will be proportioned in BTC, 31% paid in BNB, 11% in ETH and the remaining 53% in USDT.
While the proposal has 100% support on Snapshot as of press time, not every community appears to support the plan. A user named Obacoin said he is against the proposal as written as Venus Labs “seems sufficient with collecting these funds without tangible focus on the growth of the XVS token,” which has experienced a “disappointing performance” compared to rival networks, he wrote in the Venus forum.
“I strongly suggest that fund deployment should have a KPI tied to token growth. When compared to other protocol token like AAVE, we have performed abysmally and until we have a team with clear entrepreneurial mandate, the focus will only be on protocol ability to generate revenue that is not transmitting to token value,” Obacoin said. “It’s time to wake up and maximise token holders value!”
XVS, a token with a $136.3 million fully diluted market cap and circulating supply of 16 million tokens, currently trades at $4.57 — down from an all-time high of $146 set in May 2021 a few months after launching, according to The Block’s data page.
According to the Venus forum, the community is also considering reducing XVS emissions on its supported chains. In the first half of 2025, Venus plans to introduce “capped oracles,” improve its risk management via automated “Risk Stewards,” add a ERC 4626 wrapper for its vTokens, expand to more EVM chains and “define and announce the Venus V5 proposal.”
In February, Venus Protocol suffered a $717,000 loss from taking on bad debt following an oracle manipulation attack on the Ethereum Layer 2 network ZKsync.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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