Will Usual’s revenue switch meet its expectations amid rising uncertainties?
The Revenue Switch, which is designed to allocate 100% of Usual’s (USUAL) protocol revenue to USUALx stakers, has been launched by the creators of the USUAL token and USD0 stablecoin ecosystem. This initiative signifies a noteworthy advancement in decentralized finance, but its launch coincides with ongoing community apprehensions regarding recent modifications to the protocol’s redeem functionality.
Activated on January 13, 2025, the Revenue Switch allows USUALx stakers to obtain protocol-generated revenue, projected at $5 million monthly, directly in USD0. This mechanism ties token value to real earnings, with the aim of encouraging long-term staking and fostering sustainable growth for the protocol.
As of January 14, 2025, the USUAL token is valued at $0.5319, boasting a market capitalization of $275.68 million and a 24-hour trading volume of $194.6 million. Around 36.53% of the token supply is currently staked, promising an annual yield of 275%, which includes 42% in USD0 rewards and 233% in USUAL.
While the Revenue Switch has generated excitement, the protocol has encountered backlash over its amendment to the redeem function for USD0 stablecoins. This new feature permits a temporary halt of redemptions under certain circumstances, such as during market volatility or liquidity issues. Although USUAL has asserted that the change aims to ensure stability in extreme conditions, it has sparked concerns about the centralization of control and its potential effects on decentralization.
The rollout of the Revenue Switch and the revisions to the redeem function are part of USUAL’s broader efforts to cement its status as a prominent DeFi protocol. The Revenue Switch seeks to enhance the functionality of USUAL tokens, stabilize returns for stakers, and deliver a clear mechanism for revenue distribution. USUAL has also expressed intentions to refine its model in upcoming months, incorporating advanced staking and governance frameworks inspired by the “veModel” used in other DeFi projects.
As USUAL navigates these developments, the success of the Revenue Switch could act as a proof of concept for revenue-based tokenomics, potentially shaping future practices in the industry. Simultaneously, the protocol’s response to community concerns will be closely monitored, as it may affect trust and adoption in an increasingly competitive DeFi landscape.
