Can Usual’s Revenue Switch Deliver on Promises Amid Growing Concerns?
The Revenue Switch, a groundbreaking mechanism designed to allocate 100% of Usual’s (USUAL) protocol revenue to USUALx stakers, has officially launched. This initiative represents a significant milestone for decentralized finance, yet it arrives amid rising community apprehensions regarding recent modifications to the protocol’s redeem function.
Activated on January 13, 2025, the Revenue Switch allows USUALx stakers to receive protocol-generated revenue, projected to be around $5 million each month, payable directly in USD0. This innovative mechanism ties the token’s value to actual earnings, aiming to promote long-term staking and facilitate robust protocol growth.
As of January 14, 2025, the USUAL token is trading at $0.5319, boasting a market capitalization of $275.68 million and a 24-hour trading volume of $194.6 million. Currently, approximately 36.53% of the token supply is staked, yielding an impressive annual return of 275%, which includes 42% in USD0 rewards and 233% in USUAL.
While the Revenue Switch generates excitement within the community, the protocol faces scrutiny over its revised redeem function for USD0 stablecoins. This update permits a temporary suspension of redemptions under certain conditions, including during market volatility or liquidity constraints. Although it’s positioned as a measure to maintain stability during extreme market scenarios, concerns linger regarding the concentration of control and its potential impact on decentralization.
The rollout of the Revenue Switch, alongside the amendments to the redeem function, is part of Usual’s broader strategy to establish itself as a dominant player in the DeFi space. The Revenue Switch aims to elevate the use of USUAL tokens, ensure stable returns for stakers, and provide a clear framework for revenue distribution. Additionally, Usual has signaled intentions to enhance its model in the upcoming months, with advanced staking and governance frameworks inspired by successful models utilized in other DeFi projects.
As Usual charts its course through these changes, the effectiveness of the Revenue Switch may set a precedent for revenue-driven tokenomics, influencing future practices in the rapidly evolving DeFi landscape. The protocol’s ability to address community concerns will be pivotal in maintaining trust and driving adoption within an increasingly competitive ecosystem.
