Usual Protocol activates revenue switch amid redeem function debate
Can Usual’s revenue switch deliver on its promises amid growing concerns?
The Revenue Switch, a mechanism designed to distribute 100% of Usual’s ( USUAL ) protocol revenue to USUALx stakers, has been launched by the USUAL token and USD0 stablecoin ecosystem creators. While the initiative marks a significant step forward for decentralized finance, its debut is accompanied by ongoing community concerns about recent changes to the protocol’s redeem function.
Activated on Jan. 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 incentivize long-term staking and support sustainable protocol growth.
As of Jan. 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.

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. 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.
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.
As USUAL navigates these developments, the success of the Revenue Switch may serve as a proof of concept for revenue-based tokenomics , potentially influencing future practices in the sector. At the same time, the protocol’s response to community concerns will be closely watched, as it could impact trust and adoption in an increasingly competitive DeFi ecosystem.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The number of Russian-language crypto exchangers has grown to record levels in 4 years

The Ministry of Energy calculated how many MW were saved due to the mining ban

Meta greenlights up to 3x salary increment for executives after staff lay off
Share link:In this post: According to reports, Meta has approved a new bonus plan that will allow executives to earn bonuses of up to 200% of their base salary. The bonus plan comes not long after Meta announced plans to reduce its workforce by dismissing up to 4000 low-performing employees. Some employees affected by the layoffs have expressed surprise, citing recent positive performance reviews.
Why XRP and ADA Remain Top Cryptos – Novogratz Explains

Trending news
MoreCrypto prices
More








