$USUAL: A Fresh Take on Governance Tokens

Alright, meet USUAL, the governance token that’s trying to rewrite the tokenomics playbook. Unlike your standard governance tokens that feel more like wallpaper than investment, USUAL claims to pack both yield and growth potential, wrapped in a sleek community-driven package.

Let’s break down what makes USUAL tick and why it claims to be the smarter choice for yield-hungry DeFi junkies who want more than just another inflated governance token in their wallets.

Most governance tokens give you the illusion of power but zero actual revenue rights. USUAL, on the other hand, says, "Hold me, and you get 100% access to the protocol's cash flows." This means that when the protocol’s treasury grows, your USUAL should theoretically grow in value too. For once, governance token holders aren’t just signing off on proposals; they’re tapping into revenue—almost like dividends in the TradFi world.

You know how some tokens start strong, then quickly become inflation-riddled messes ? USUAL aims to keep inflation on a leash by aligning issuance with Total Value Locked growth. When USD0++ (the protocol’s liquid staking version of USD0) grows, USUAL issuance slows down. The idea is to create natural scarcity, boosting token value over time instead of diluting it with endless emissions.

Only 10% of USUAL’s tokens go to insiders, with the other 90% set for the community. If you’re tired of projects with VC-heavy token allocations, USUAL’s no-VC, community-first model is refreshing. This means that users, liquidity providers, and builders who grow the ecosystem actually get to reap the rewards.

USUAL holders also get to play an active role in protocol direction, particularly in liquidity distribution and treasury management. If you stake USUAL, you get to vote on where the protocol allocates funds and how it deploys its treasury, which adds a new layer of utility beyond simply earning yield.

The emission model for USUAL isn’t exactly intuitive. It’s based on TVL growth, interest rates of collateral assets, and protocol revenue—all factors that could complicate forecasting your future returns. If you’re looking for simplicity, this might not be it. But if you’re okay with a dynamic emission model that adjusts based on the protocol’s growth, it could be worth it.

Starting Q1 2025, if you want to pull out your staked USD0 early, you’ll need to burn some USUAL to unlock those funds. This feature adds a layer of liquidity to the staking system but isn’t without its cost. It’s great if you’re committed long-term, but short-term players may balk at having to burn tokens just to cash out early.

While USUAL’s tokenomics are designed to favor long-term holders, it’s still not immune to market risks. If TVL growth stagnates or interest rates for underlying assets go south, USUAL’s value could take a hit. Plus, community-driven treasury management is only as good as the DAO’s voting decisions. The hope here is that the community knows what it’s doing and doesn’t blow through treasury funds irresponsibly.

If you’re looking for a quick pump and dump, USUAL’s long-term, deflationary model probably isn’t for you. This token is geared towards long-term holders who believe in the protocol’s future. The emission model, capped inflation, and revenue-sharing structure mean USUAL is more about compounding value than hitting a short-term moonshot.

There’s no denying that USUAL is doing some things right. Tying governance token value to actual cash flow ? Smart. Keeping 90% of supply in the community’s hands ? Even better. And with a decreasing issuance model that aligns with TVL growth, USUAL is taking a serious shot at creating sustainable value.

That said, as with any new governance model, execution is everything. If USUAL can actually deliver on its roadmap—disinflationary issuance, direct revenue sharing, and effective governance—it could become a new standard in tokenomics. But as with all things DeFi, only time will tell if $USUAL is built to last or just another experiment in decentralized incentives.