The launch of the Revenue Switch by Usual (USUAL) has sparked a mix of excitement and concerns within the decentralized finance community. This mechanism, which distributes 100% of protocol revenue to USUALx stakers, aims to incentivize long-term staking and support sustainable growth within the ecosystem.
Activated on Jan. 13, 2025, the Revenue Switch is set to distribute an estimated $5 million per month to USUALx stakers in USD0 stablecoin. This move aligns token value with actual earnings, creating a direct link between protocol revenue and staking rewards. The goal is to drive long-term engagement and establish a steady stream of rewards for participants.
As of Jan. 14, 2025, the USUAL token is trading at $0.5319, with a market capitalization of $275.68 million. With approximately 36.53% of the token supply staked, users can enjoy an annual yield of 275%, with rewards split between USD0 and USUAL tokens.
However, alongside the excitement surrounding the Revenue Switch, there have been concerns raised regarding recent changes to the protocol’s redeem function for USD0 stablecoins. The update allows for temporary suspension of redemptions under specific conditions, which has sparked debates around control concentration and decentralization implications.
Despite these concerns, Usual is forging ahead with its strategy to solidify its position in the DeFi space. The Revenue Switch is just one aspect of a broader plan to enhance the utility of USUAL tokens, stabilize returns for stakers, and establish transparent revenue distribution mechanisms. Additionally, the project has hinted at future refinements to its model, incorporating advanced staking and governance frameworks inspired by successful DeFi projects.
The success of the Revenue Switch could serve as a blueprint for future tokenomics models in the DeFi sector, showcasing the potential of revenue-based incentives. However, Usual’s response to community feedback and concerns will play a critical role in shaping trust and adoption within the competitive DeFi landscape.
Overall, the launch of the Revenue Switch represents a significant milestone for Usual and the broader DeFi community. As the ecosystem continues to evolve, the project’s ability to address feedback, innovate, and deliver on its promises will be key to its long-term success.