$USUAL: Where Yield and Governance Converge for a New Era of Tokenomics
USUAL introduces a refreshing take on governance tokens, bridging the often-uneven balance between yield generation and ecosystem growth. Backed by real cash flow and community-centric distribution, it offers users a dual benefit that many governance tokens fail to provide—steady returns and long-term value.
USUAL positions itself uniquely as both a governance and utility token with features designed to grow alongside the protocol. It’s not merely a governance token in title; USUAL grants holders access to 100% of the protocol’s revenue, grounding it in real cash flows. Unlike tokens that rely solely on speculation or short-term incentives, USUAL aligns its incentives with protocol revenue, making it a dynamic and valuable long-term asset.
Source: Usual
Scarcity is an essential component of USUAL’s appeal. As deposits in the protocol increase, USUAL’s emission rate decreases. This disinflationary issuance means the token supply doesn’t dilute over time, but rather grows in tandem with Total Value Locked (TVL). As a result, each token’s value scales with protocol growth, creating a stable foundation for holders.
USUAL’s distribution model ensures that the community remains the primary beneficiary of the protocol’s success. Ninety percent of USUAL tokens are allocated to the community, with just 10% going to team members and early investors. This allocation protects users from excessive insider influence, creating a fairer, more equitable structure that promotes sustained participation and ecosystem trust.
USUAL’s utility extends beyond governance through its staking feature, where holders can activate governance rights and earn a portion of newly issued USUAL tokens. Staking incentives, along with a gauge mechanism that helps optimize liquidity distribution, encourage holders to engage actively with the protocol, bolstering long-term stability.
Source: Usual
In Q1 2025, USUAL will enable a new feature, allowing users to burn a portion of their tokens to unlock staked USD0 (USD0++), enhancing liquidity and flexibility for stakers. This option expands USUAL’s utility while balancing supply and demand dynamics within the protocol.
USUAL’s design addresses the shortcomings common in most governance tokens. Unlike many tokens that mimic existing models, USUAL’s value directly correlates with protocol revenue growth. Its issuance model is carefully calibrated to maintain inflation rates below revenue growth, linking token value to tangible cash flows. This structure allows for meaningful, sustained value for those invested in the protocol’s long-term vision.
The $USUAL emission model is particularly strategic, designed to control token issuance based on TVL growth and interest rates of assets backing USD0. This structure minimizes inflation, protecting early adopters from dilution while preserving value for long-term holders. By capping emissions and adjusting issuance rates based on TVL growth, USUAL maintains intrinsic value, ensuring that each token represents a growing portion of the protocol’s revenue.
This model ultimately benefits users who contribute to protocol growth and underscores USUAL’s commitment to fair value distribution. Emission is kept significantly below treasury growth, preventing excessive inflation and aligning incentives within the ecosystem.
USUAL’s governance model empowers holders with control over treasury and collateral management, setting it apart from many governance tokens that offer limited utility beyond token holding. Through staking, USUAL holders influence key financial decisions, ensuring that treasury management aligns with the community’s vision. This level of transparency and control fosters a sense of ownership and long-term commitment among users.
The protocol’s roadmap includes expanded utility, with future implementations offering holders greater access to earnings per token. As TVL increases, the token value naturally scales upward, directly correlating with the protocol’s financial success. The USUAL model is designed to attract long-term participants, encouraging sustainable growth rather than incentivizing short-term gains.
USUAL’s tokenomics model reflects a sustainable approach, where token supply growth is tied to ecosystem expansion. This prevents excessive inflation and ensures a balanced distribution of rewards to those driving the protocol’s success. By aligning governance and utility features, USUAL’s framework supports a stable ecosystem for growth and collaboration.
With USUAL, holders gain an opportunity to participate in a governance model that rewards commitment to protocol growth and provides tangible, sustained value. It’s a community-focused model that prioritizes users over insiders, setting a new standard for governance tokens.
