Positive Impacts Estimated at 70%, Negative Impacts at 30%
Positive Impacts (70%)
1. Increased Ecosystem Growth
Activating the “fee switch” adds utility to holding USUAL and attracts new investors to the ecosystem.
• Higher demand for USUAL → Leads to price appreciation.
• USUALx valuation increases because its value is tied to USUAL, benefiting stakers with higher returns.
2. Enhanced Incentives for Staking USUALx
Despite the fee-sharing feature of USUAL, the 235% APY for USUALx staking remains highly attractive.
• Investors seeking long-term returns will continue to stake USUALx, supporting the staking ecosystem.
3. Boost in Adoption and Market Attention
The activation of the fee switch creates positive sentiment around both USUAL and USUALx in the Meme Token and DeFi space.
• New investors may be drawn to explore both options, increasing participation in the ecosystem.
Negative Impacts (30%)
1. Shift in Attention from USUALx to USUAL
The fee switch may cause some users to hold USUAL to earn transaction fee rewards, reducing staking incentives for USUALx.
2. Potential Increase in USUALx Total Supply
The compounding bonus mechanism of USUALx staking could lead to an excessive increase in Total Supply if market demand does not grow proportionally, affecting the system’s balance.
3. Communication Challenges
Investors may be confused about whether to invest in USUAL or USUALx if the strategy is not clearly communicated, potentially reducing market confidence.
Conclusion
Positive impacts outweigh negative impacts (70:30) because:
• USUAL and USUALx remain complementary in strategy.
• The system caters to both short-term investors (holding USUAL for fee rewards) and long-term investors (staking USUALx for high APY).
Recommendations
1. Clearly communicate the advantages of staking USUALx, emphasizing its high APY, to prevent any shift in focus solely to USUAL.
2. Closely monitor the impact of Total Supply growth to maintain the balance between market demand and supply.
Both tokens can coexist and thrive with proper communication and strategic adjustments.
