$USUAL

1️⃣ The gradual increase to 4 billion TOTAL tokens is not a cause for concern

  • This process is planned and natural within the token’s economic model.

  • The tokens issued for the total of 4 billion do not all enter the market immediately.

  • Many of these are reserved for future incentives, team, ecosystem development, and liquidity (as shown in the chart).

⚠️ What matters is the actual circulation of tokens. That is, the tokens that actually enter the market for trading. As long as the new tokens remain out of circulation, they do not affect the supply and demand dynamics, keeping the price stable.

2️⃣ Why did the 494 million limit cause confusion?

  • This number was related to the volume of tokens released for Launchpool and Airdrops, which have different impacts:

- Launchpool: Tokens released in small batches to attract investors.

- Airdrops: These are free distributions to encourage adoption and engagement, but they often generate selling pressure.

  • When these 494 million tokens enter the market, they can cause a temporary drop in price due to the sudden increase in supply. This is why we have seen previous swings.

3️⃣ The outstanding issue will continue, but proportionally to the LTV on the Usual platform.

  • What is LTV? It is the value frozen on the platform by investors.

  • Whenever an investor freezes their capital, the protocol issues new tokens proportional to the locked amount.

  • This means that the price is not diluted, because the value generated by the freeze accompanies the issuance of new tokens.

Example:

If $1 million in capital is frozen, $1 million worth of tokens can be issued without causing an imbalance in the market because the supporting capital is there.

  • Price Impact: This model maintains the balance of supply and demand. Unlike Launchpool/Airdrop tokens, this issuance does not generate selling pressure because it is accompanied by a real value base.

4️⃣ $USUAL is NOT a Stablecoin

  • The biggest source of confusion is that the Usual company issues stablecoins (such as USD0 and USD0++), but the USUAL token is not one of them.

  • The $USUAL token was designed as an incentive for investors who freeze capital.

  • Its value varies according to demand and the market, it does not remain fixed like a stablecoin.

📍Why does the name cause confusion?

Usual as a company encompasses several products, such as:

  • Stablecoins (USD0 e USD0++).

  • USUAL Token (listed on Binance).

  • Other assets and services related to the ecosystem.

📍Many investors confuse the $USUAL token with the company's stablecoins and with Usual (company) - which encompasses everything -, but it is essential to separate things:

  • Stablecoins: Designed to maintain a fixed price.

  • $USUAL: A market asset subject to fluctuations, which serves as an incentive.

🎯Why does this matter to you?

  • Understanding the token economy helps you avoid hasty decisions and act strategically:

  • Don't worry about the increase in tokens out of circulation.

  • Be aware of the impact of tokens released in airdrops and Launchpool, as they can create buying opportunities on temporary dips.

  • Focus on LTV growth, which sustains the token's market value in the long term.

Do not confuse the USUAL token with a stablecoin – it is a market asset with variable behavior.

❓ If you have any questions, leave them in the comments 😉