Venom Ventures Research Report

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Introduction to Venom Ventures#

Venom Ventures, also known as Venom Ventures Fund (VVF), is managed by Iceberg Capital Limited. The company is a 3C investment management firm located in the Abu Dhabi Global Market and regulated by the FSRA. Iceberg Capital is a rapidly growing alternative asset management company that provides a diversified investment management platform, including direct and private equity, venture capital, technology, and virtual assets.
VVF combines old and new money and serves as the perfect platform to lead the next iteration of blockchain development. It invests based on systematic and research-driven processes, combining quantitative data with next-generation thinking.
Venom Foundation, a subsidiary of VVF, is primarily responsible for executing project investments and incubation. It is a leading global blockchain company that brings transparency and innovation to the industry. Its goal is to provide infrastructure for governments and web3 projects while supporting emerging economies in the Middle East and North Africa with its unique technology.
Venom Blockchain is their flagship ecosystem. It is a zero-layer architecture for blockchain development, offering infinite scalability. Any entity can build customized decentralized work chains on top of it. Currently, it is in the testnet and application development phase.

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Venom Blockchain Project Financing#

Currently, there is no information available regarding Venom Blockchain financing. Based on the above introduction, it can be understood that Venom is directly incubated by VVF, which is a $1 billion venture fund launched in early 2023.
The core focus of VVF is to build the Venom Blockchain ecosystem and connect web2 and web3 through Venom and its applications. In theory, there should be a significant amount of funds invested in the Venom Blockchain.

Venom Token Economy#

Venom Token#

VENOM token is the primary currency used in the Venom Blockchain. It is designed to serve as a utility token, providing various fundamental functionalities within the ecosystem. One of its main functions is to serve as a settlement method for network participants, allowing them to pay network fees and settle transactions using VENOM tokens.
VENOM token is intended to perform multiple key functions within the network, including:

🎈 Incentivizing validators: VENOM tokens are rewarded to validators who contribute to maintaining network integrity. Validators receive VENOM rewards for every block they generate.

🎈 Guarding against Sybil attacks: The network utilizes a Proof-of-Stake (PoS) mechanism to guard against Sybil attacks. Participants must stake their tokens to become validators, and the number of validators a participant can create is limited by the number of tokens they hold.

🎈 Delegated staking: Participants in the network can delegate their tokens to other participants who wish to become validators.

🎈 Governance: The network will introduce a governance mechanism that allows participants to propose and vote on proposals using VENOM tokens.

VENOM is subdivided into the smallest transferable unit called NanoVENOM, with the unit precision as shown in the following image:

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VENOM tokens do not confer any form of ownership, such as shares, equity, profits, dividends, or investment returns.

Venom Token Supply#

Venom Blockchain has an inflationary model, which means there is no fixed maximum token supply. The Venom Foundation is exploring methods to transition to a deflationary model, and one possible method is burning transaction fees. This is not a final proposal. The transition to a deflationary model requires careful consideration and planning to avoid any negative impact on the network's stability and sustainability. The Venom Foundation will continue to evaluate the behavior of network participants and explore the best methods to maintain a healthy and thriving ecosystem for all participants after the launch.
During the mainnet launch, Venom Blockchain issued an initial token supply of 7,200,000,000 VENOM. Of this, 15.5% (1.116B) is immediately unlocked, and 84.5% (6.084B) is in a locked state. The locked tokens include 10% (720M) of the initial supply allocated as initial validators' shares. The estimated annual inflation rate is approximately 1% (~72,000,000 VENOM).

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