# Usual Revenue Distribution

The **USUALx Revenue Distribution Module** lets USUALx holders commit their **staked USUAL** for fixed durations to gain access to the protocol’s **revenue distributions** via the **Revenue Switch**.

* **Only locked USUALx earns protocol revenue** (weekly USD0 distributions).
* **Unlocked (basic staked) USUALx** still earns its share of the 22**% daily USUAL emission**, but **does not** participate in weekly USD0 revenue distributions.
* **Longer lock durations** receive **duration-based boosts**, increasing a user’s *relative* share of weekly revenue.

***

## Design Philosophy

The Locking Module directs protocol revenue to committed participants and aligns long-term holders with protocol health. By requiring immutable time commitments to access revenue, the mechanism:

* **Filters for conviction:** Only participants willing to commit capital for defined periods receive the protocol’s real yield.
* **Reduces volatility:** Locked positions cannot be withdrawn impulsively, supporting a more stable staker base.
* **Supports sustainable growth:** Revenue flows to durable supporters of the ecosystem rather than short-term yield seekers.

***

## From Staking to Revenue: The Full Stack

Staking is the first step in a layered participation model, where each layer unlocks additional benefits:

| Layer                | Action                                        | Benefit                                                     |
| -------------------- | --------------------------------------------- | ----------------------------------------------------------- |
| **1. Staking**       | Deposit USUAL → receive USUALx                | Earn 22,5% of daily USUAL emissions                         |
| **2. Locking**       | Lock USUALx for 1, 3, 6, or 12 months         | Become eligible for protocol revenue via the Revenue Switch |
| **3. Revenue Share** | Hold locked USUALx through full weekly epochs | Receive weekly USD0 distributions from protocol earnings    |
| **4. Governance**    | Hold USUALx                                   | Participate in on-chain governance votes                    |

Longer lock durations provide **higher revenue boosts**—the protocol rewards long-term commitment with a proportionally greater share of distributed revenue. Locks are **immutable until expiration**. At maturity, tokens become fully liquid and can be **withdrawn or re-locked**. Users can also maintain **multiple lock positions simultaneously**, each with its own duration.

***

## How It Works

The Locking Module is layered on top of basic USUALx staking. The end-to-end flow is:

1. **Stake USUAL → Receive USUALx**\
   Deposit USUAL into the staking contract at the current exchange rate and receive **USUALx**. No lock-up is required at this stage. Simply holding USUALx earns you a share of the **\~22% daily USUAL emission**.
2. **Lock USUALx → Become Eligible for Protocol Revenue**\
   Lock your USUALx for a fixed duration to become eligible for **weekly USD0 revenue distributions** via the Revenue Switch.
3. **Hold Through Epochs**\
   Revenue is distributed on a **weekly epoch** schedule (**Monday UTC+0 to Sunday UTC+0**). To qualify for a given week’s distribution, your locked position must remain locked for the **entire epoch**.
4. **Maturity → Withdraw or Re-lock**\
   When the lock expires, your USUALx becomes liquid again. You can:
   * **Withdraw** (convert USUALx back to USUAL at the then-current, appreciated exchange rate), or
   * **Re-lock** for a new term.

***

## Lock Durations and Revenue Boosts

USUALx can be locked for one of four fixed durations. Each duration applies a **revenue boost** that increases the position’s **revenue-share weighting** for weekly USD0 distributions:

| Lock Duration | Revenue Boost |
| ------------- | ------------- |
| 1 month       | Base level    |
| 3 months      | Higher boost  |
| 6 months      | Higher boost  |
| 12 months     | Maximum boost |

> **Important:** Revenue boosts affect **revenue-share weighting only**. They do **not** change governance voting power, USUAL staking emission rates, or token supply mechanics.

***

### Epoch Eligibility Rules

Eligibility is governed by strict epoch-based rules:

* **Full-epoch requirement:** Your locked position must remain intact for the **entire weekly epoch** (Monday through Sunday UTC+0) to qualify.
* **Top-ups during an epoch:** Additional locks or increases made during an active epoch count toward the **next epoch**, not the current one.
* **Withdrawals void the epoch:** **Any withdrawal during an active epoch voids all reward eligibility for that epoch.** The locked position must remain untouched for the full week to earn that week’s distribution.
* **Mid-epoch new locks:** Locks created mid-epoch begin earning revenue distributions starting the **following epoch**.

***

## Dual-Yield Structure

Locked USUALx positions can receive two yield streams at the same time:

1. **USUAL staking emissions**\
   **22% of all daily USUAL emissions** are distributed to all USUALx holders (both locked and unlocked). This value accrues through the **appreciating USUALx-to-USUAL exchange rate**. Post-disinflation, this corresponds to **301,203 USUAL/day** (\~22.3% of total daily emissions).
2. **USD0 revenue distributions**\
   Weekly Revenue Switch payouts in **USD0**, available **only** to locked USUALx positions and **weighted by lock duration** (via the revenue boost).

***

## Managing Multiple Positions

Users can manage **multiple lock positions** at the same time:

* Multiple lock positions can be opened with different **amounts** and **durations**.
* Each position is tracked independently, with its own **maturity date** and **boost level**.
* Creating a new lock does **not** affect existing locks.
* This enables lock “laddering” to balance **liquidity** and **yield optimization**.

***

## Smart Contracts

| Contract      | Address (Ethereum)                           |
| ------------- | -------------------------------------------- |
| USUALx        | `0x06B964d96f5dCF7Eae9d7C559B09EDCe244d4B8E` |
| USUALx Lockup | `0x85b6f9bddb10c6b320d07416a250f984f0f0e9ed` |

***

## Procotole Revenue & Revenue Switch

### Revenue Sources

Protocol revenue is generated from multiple sources:

| Source                      | Description                                                         |
| --------------------------- | ------------------------------------------------------------------- |
| **T-Bill collateral yield** | Primary source, yield from US Treasury Bills and repos backing USD0 |
| **Protocol fees**           | Fees from minting, redeeming, and other protocol operations         |
| **Fira lending fees**       | 10 bps base borrowing fee                                           |

### Revenue Distribution Flow

```
T‑Bill yield + protocol fees + unstaking fees
                    ↓
          Protocol revenue pool
                    ↓
    ┌───────────────┴───────────────┐
    ↓                               ↓
  30% to USUALx stakers       70% to DAO treasury
  (weekly, in USD0)            (compounding, buybacks,
                                strategic deployment)
```