SHARE MY FRIEDNDS

🧵 Addressing $USUAL inflation fears - with actual math from the whitepaper

After deep diving into tokenomics, I want to break down why these inflation concerns are overblown. Let's look at the actual formulas:

1/ Daily distribution formula (Section 5.1):
USUALdist = (0.25/365) × Mt × Supply++t × Pt

That 0.25 is crucial - means core distribution over 4 years, not infinite!

2/ The real magic is in the Minting Rate (Mt):
Mt = min[M0 × St × Rt/γt, κt]

This ensures:

Can't exceed initial rate
Decreases with growth
Adjusts with market conditions

3/ Here's where it gets brilliant. Supply Factor (St):
St = min[(Supply0 × P0)/(Supply++t × Pt), 1]

As TVL grows → St decreases → Lower emissions per USD0++
Math literally enforces scarcity! 📉

4/ Rate Factor (Rt) ties minting to real yields:
Rt = min[max[rt, rmin], P90(πt)]/r0

Translation: When treasury yields drop, minting drops. No artificial inflation!

5/ The hard cap factor κt (Section 5.1.5):
κt = (M0 × max[rt, rmin])/(r0 × γt)

"The cap factor is included to ensure the minting rate does not go above the initial minting rate" - direct quote!

6/ Why this matters:

Every new USUAL = proof of actual revenue
Emission rate drops as protocol succeeds
Hard mathematical caps prevent excess
Automatic adjustment with market conditions

7/ Direct whitepaper quote (Section 5):
"The token's supply is inherently disinflationary, as the amount of USUAL distributed per unit of locked TVL decreases in proportion to the protocol's growth"

8/ More protection from Section 5.1.4:

Scale factor (γt) lets DAO adjust if needed
Time factor (τt) ensures proper daily distribution
Both provide extra control layers

9/ Think about current price... Market fears inflation but math shows:

Controlled emission schedule
Built-in scarcity mechanisms
Real yield backing
Multiple protective factors

10/ Final thought from whitepaper:
The model ensures "USUAL issuance remains adaptive to both macroeconomic conditions and protocol-specific developments"

This isn't hopium - it's mathematical certainty.