Here’s why:
1. $USUAL is a Governance Token:
• It empowers holders to control and govern the Usual protocol by voting on decisions such as fee structures and supply mechanisms.
• Unlike Stablecoins, USUAL’s value is determined by market demand and its utility within the ecosystem, not by being pegged to any asset.
2. No Pegged Value:
• Stablecoins are designed to maintain a fixed value by being tied to assets like USD or other commodities.
• USUAL does not have such a mechanism, meaning its price fluctuates freely based on market conditions.
3. High APY and Staking Rewards:
• USUAL offers staking with an impressive 247% APY through compounding rewards in $USUALX.
• This high return mechanism increases supply and can lead to price volatility, unlike the price stability of Stablecoins.
4. Price Volatility:
• Stablecoins prioritize stability (e.g., 1 USDT ≈ 1 USD), but $USUAL’s value is subject to the dynamics of the crypto market and the Usual protocol’s governance decisions.
Conclusion
$USUAL is not a Stablecoin. It’s a governance token designed to grow long-term value within the Usual ecosystem. Its price is influenced by market forces, staking mechanisms, and DAO decisions, making it fundamentally different from a Stablecoin.
