$USUAL

The Problem with Most Governance Tokens

The DeFi governance token landscape is still dominated by structural design flaws that make it difficult for tokens to hold long-term value:

• Unoptimized “copy‑paste” models: Many tokens repeat the same template and fail to balance short-term liquidity farming with long-term ownership. Emissions create constant sell pressure that is rarely matched by durable demand, increasing utility, or a credible link to revenue. The pattern is familiar: launch hype → farming-driven inflation → gradual value decay.

• Weak connection between value and governance: In many protocols, governance rights are not meaningfully connected to the revenues those protocols generate. Tokens are often issued primarily to benefit issuers, without a clear mechanism tying token value to revenue potential or real utility. This keeps valuations speculative: price and FDV are frequently sustained by narratives rather than fundamentals.

• Misaligned incentives and dilution: Founders and contributors often receive an oversized allocation (commonly 30–50%+), while users, LPs, and ecosystem participants—those who actually create value, receive less than they should. On top of that, poorly designed tokenomics can lead to high, unchecked inflation, diluting holders without corresponding growth in protocol earnings.

• No revenue redistribution (especially in stablecoins): In the stablecoin sector, centralized issuers like Tether and Circle generated over $10 billion in combined revenue in 2023 from user deposits, and redistributed none of it. Users bear the opportunity cost and risk of holding stablecoins, yet receive no share of the yield their capital generates. The stablecoin model has largely remained unchanged since inception.

How USUAL Solves These Problems

1. Revenue-Backed, Not Speculation-Backed

USUAL represents ownership of 100% of the protocol’s revenue. The yield generated by USD0’s underlying collateral, primarily US Treasury Bills, flows to USUAL holders through the Revenue Switch, which distributes protocol earnings weekly in USD0 to stakers.

2. Community-First Distribution (100% Model)

USUAL was designed to redistribute 100% of all value generated to USUAL holders, liquidity providers, active users, and ecosystem partners. This is intentionally the inverse of both traditional finance and most DeFi token distributions:

Model	Revenue Beneficiary	User Share
Tether (USDT)	Tether Limited (100%)	0%
Circle (USDC)	Circle (100%)	0%
Usual Protocol (USUAL)	Usual Holders	100%

Those who create value, by depositing collateral, providing liquidity, and driving adoption, are positioned as the primary beneficiaries.

3. Dual Yield: Emissions + Real Revenue

Staking USUAL as USUALx is designed to provide a dual-yield profile:

Yield Source	Description	Denomination
Staking Emissions	≃22.5% of all daily USUAL emissions (anti-dilution)	USUAL
Revenue Switch	Up to 100% of protocol revenue distributed weekly	USD0

USUALx holders earn both token-denominated rewards and real yield in USD0, a stablecoin backed by US Treasury Bills. Unlike emission-only incentives that can dilute value, the Revenue Switch is designed to deliver actual protocol earnings.

4. Governance Over Real Parameters

USUAL governance is designed to be economically meaningful, not symbolic. Holders vote on decisions that directly affect protocol revenue, token supply dynamics, and collateral composition:

• Collateral governance — which RWAs are accepted as USD0 collateral

• Parameter governance — fees, emission rates, and risk parameters

• Treasury governance — how the ~$30M+ DAO treasury is invested and deployed

• Asset onboarding — approving new Liquid Deposit Tokens (e.g., ETH0, EUR0, and beyond)

These levers directly shape the system’s economics, giving USUAL holders governance over what matters.

5. Built on Real Cash Flows, Not Narratives

The protocol is designed to generate revenue from some of the safest yield-bearing assets in traditional finance, US Treasury Bills, held as on-chain verifiable collateral.

Key metrics:

Metric	Value
Annual revenue (current)	~$5.5–6 million
Revenue Switch distribution	Weekly, in USD0
DAO treasury (Sept 2025)	~$30.75 million

USUAL in Summary

Property	USUAL	Typical Gov Token
Revenue linkage	100% of protocol revenue	Usually none
Yield source	Protocol Revenue + emissions	Emissions only
Revenue distribution	Weekly in USD0 via Revenue Switch	Rarely implemented
Governance scope	Collateral, treasury, parameters, assets	Often limited
Valuation basis	Cash-flow	Speculative / narrative
Supply cap	3 billion (revised down from 4B)	Often static or increasing

USUAL is designed to be what governance tokens should have been from the beginning: a token backed by real economics, distributed to the people who create value, and governed through decisions that materially affect the protocol. It combines cash-flow-backed yield with growth upside, anchored in the expanding adoption of USD0.

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Usual Tokenomics

Metric	Value
Maximum supply	3.0 billion USUAL
Current daily emissions	~1,350,000 USUAL/day
Distribution end date	June 2028

The supply cap was originally 4.0B USUAL. Following the UIP-11 governance vote (Nov 2025), it was reduced by 25% to 3.0B USUAL, alongside a ~50.7% reduction in daily emissions. This disinflation shock aimed to reduce excessive sell pressure from farming rewards and better align supply expansion with organic demand.

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Post-Disinflation Allocations (January 2026)

After UIP-11, daily emissions were restructured as follows until June 2028.

Bucket	Daily USUAL
bTOKEN (bUSD0 + ETH0)	130,000
LP rewards	69,953
USUALx	301,203
USUAL STAR	301,203
Foundation	547,641
Total	~1,350,000

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Pre-TGE Distribution

Category	Amount
Airdrop	340,000,000 USUAL (7.5% of initial minting rate)
Binance Launchpool	300,000,000 USUAL
Total pre-TGE	640,000,000 USUAL

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Contract	Address
USUALx	0x06B964d96f5dCF7Eae9d7C559B09EDCe244d4B8E