At the heart of the $USUAL ecosystem lies a strategic interplay between two personas—the patient tortoise and the risk-loving hare. This dynamic mirrors the choices users make in managing USUAL tokens, emphasizing long-term sustainability versus short-term gains. The introduction of USUALx, the staked and liquid version of USUAL, adds a new dimension to this DeFi game theory.
What is USUALx?
USUALx transforms the utility of the native $USUAL token. While USUAL is liquid and does not carry governance or economic rights, USUALx provides holders with:
1. Governance Power: Influence in decision-making within the Usual ecosystem.
2. Economic Rights: Access to rewards and fees generated within the system.
The three main economic benefits for USUALx holders are:
- Rewards Distribution: 10% of all USUAL distributions are allocated to USUALx holders, compounding automatically.
- System Fee Allocation: One-third (33.33%) of system fees, including unstaking and early redemption fees, are distributed to USUALx holders.
- Revenue Switch Mechanism: Treasury revenues will eventually be distributed as dividends to USUALx holders.
This structure ensures consistent rewards while incentivizing long-term staking, as fewer stakers amplify the returns for committed participants.
Game Theory and Decision Matrix
USUALx's design aligns with a key principle of DeFi: rewarding loyalty and patience. When fewer users stake their tokens, the remaining stakers receive higher yields. Additionally, system fees from unstaking and exits are redistributed to loyal stakers, creating a system where rewards grow as short-term users leave.
For example:
- If User A and User B both stake USUAL, and User A unstakes, User B not only receives higher staking rewards but also benefits from the fees paid by User A.
- This creates a dynamic where the tortoise (long-term staker) consistently gains, reinforcing a commitment to sustainable growth.
Why USUALx Stands Out
Unlike traditional staking models, where rewards are proportional to participation, USUALx delivers fixed rewards. This ensures that as staking participation fluctuates, long-term users see increasing benefits. Additionally, the introduction of USUALx fosters equilibrium between short-term and long-term participants, aligning incentives for ecosystem stability.
Conclusion
USUALx is a revolutionary step toward a more sustainable and equitable DeFi ecosystem. By rewarding patience and commitment, it ensures that the tortoise crosses the finish line with the highest rewards. However, every participant benefits, as the system allows for dynamic participation.
This design not only promotes long-term growth but also empowers users to play their roles strategically, ensuring that $USUAL remains a benchmark for fairness and innovation in DeFi.
Disclaimer: Visit the Usual Website or read the whitepaper for detailed insights on rewards and payout mechanisms.