Revenue Switch Enabled by Standard Protocol in Redemption Function Dialogue

Will Usual’s revenue switch fulfill its promises despite rising concerns?

The Revenue Switch, a tool intended to allocate 100% of Usual’s (USUAL) protocol revenue to USUALx stakers, has been launched by the creators of the USUAL token along with the USD0 stablecoin ecosystem. While this initiative represents a notable advancement for decentralized finance, its rollout comes amidst ongoing community apprehensions regarding recent modifications to the protocol’s redeem functionality.

Activated on January 13, 2025, the Revenue Switch allows USUALx stakers to earn protocol-generated revenue estimated at $5 million monthly, paid directly in USD0. This mechanism ties token value to actual earnings, aiming to encourage long-term staking and foster sustainable growth for the protocol.

As of January 14, 2025, the USUAL token is valued at $0.5319, with a market cap of $275.68 million and a 24-hour trading volume of $194.6 million. Approximately 36.53% of the total token supply is staked, offering an annual yield of 275%, composed of 42% in USD0 rewards and 233% in USUAL.

Usual Protocol activates revenue switch amid redeem function debate - 1
USUAL 1D chart | Source: CoinmarketCap

Despite the enthusiasm surrounding the Revenue Switch, the protocol has encountered criticisms regarding its update to the redeem function for USD0 stablecoins. The newly introduced feature permits the temporary suspension of redemptions under certain conditions, such as during times of market volatility or liquidity challenges. Although USUAL has explained that this adjustment aims to preserve stability during extreme circumstances, it has incited concerns about control concentration and potential ramifications for decentralization.

The launch of the Revenue Switch, along with modifications to the redeem function, reflects USUAL’s broader strategy to solidify its standing as a top-tier DeFi protocol. The Revenue Switch seeks to boost the utility of USUAL tokens, stabilize returns for stakers, and provide a clear framework for revenue distribution. USUAL also plans to enhance its model in the coming months, introducing advanced staking and governance systems inspired by the “veModel” utilized in other DeFi initiatives.

As USUAL navigates these changes, the effectiveness of the Revenue Switch may serve as a proof of concept for revenue-driven tokenomics, potentially shaping future industry practices. Concurrently, the protocol’s responses to community concerns will be closely monitored, as these could significantly affect trust and adoption in an increasingly competitive DeFi landscape.



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