Wormhole (w) 
Usual’s Revenue Switch Launches Amid Concerns Over Protocol Changes
The USUAL token and USD0 stablecoin ecosystem has launched the Revenue Switch, a mechanism designed to distribute 100% of its protocol revenue to USUALx stakers. This significant step forward for decentralized finance aims to incentivize long-term staking and support sustainable protocol growth.
Revenue Switch Mechanism
Activated on January 13, 2025, the Revenue Switch enables USUALx stakers to receive protocol-generated revenue, estimated at $5 million per month, directly in USD0. This mechanism links token value to actual earnings, aiming to support the long-term sustainability of the protocol.
Eligibility and Distribution
USUALx holders who maintain their positions throughout the week will be eligible for the distribution of last week’s collateral revenues, starting from January 13, 2025, UTC+0.
USUAL Token Performance
As of January 14, 2025, the USUAL token is trading at $0.5319, with a market capitalization of $275.68 million and a 24-hour trading volume of $194.6 million. Approximately 36.53% of the token supply is staked, offering an annual yield of 275%, 42% in USD0 rewards, and 233% in USUAL.
Concerns Over Redeem Function Update
Despite the excitement surrounding the Revenue Switch, the protocol has faced criticism over its decision to update the redeem function for USD0 stablecoins. The new feature allows for temporary suspension of redemptions under specific conditions, such as during periods of market volatility or liquidity constraints.
Decentralization and Control
While USUAL has clarified that this change is intended to maintain stability in extreme scenarios, it has raised concerns about the concentration of control and potential implications for decentralization.
Strategic Plans and Future Developments
The introduction of the Revenue Switch and adjustments to the redeem function form part of USUAL’s broader strategy to secure its position as a leading DeFi protocol. The Revenue Switch aims to enhance the utility of USUAL tokens, stabilize returns for stakers, and provide a transparent mechanism for revenue distribution.
USUAL has also indicated plans to refine its model in the coming months, incorporating advanced staking and governance frameworks inspired by the “veModel” used in other DeFi projects.
Tips for USUAL Stakers
- Understand the Revenue Switch mechanism and its implications for staking rewards.
- Stay informed about the protocol’s changes and updates.
- Monitor the performance of the USUAL token and its market trends.
The success of the Revenue Switch may serve as a proof of concept for revenue-based tokenomics, potentially influencing future practices in the sector. As USUAL navigates these developments, the protocol’s response to community concerns will be closely watched, as it could impact trust and adoption in an increasingly competitive DeFi ecosystem.
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