USUALxPrice

(USUALX)

Your USUALx token balance remains the same because it functions as an auto-compounding vault token. Instead of receiving more tokens, the underlying value of each USUALx token relative to the native USUAL token increases over time. This means the exchange rate between USUALx and USUAL grows, so when you eventually unstake or convert your USUALx back to USUAL, you will receive a larger amount of USUAL, realizing your accumulated profits.

The 10% unstaking fee is a fundamental aspect of the protocol's game theory, designed to incentivize long-term holding and discourage short-term speculative trading. This mechanism aims to penalize quick exits by users, promoting stability within the staking ecosystem. Importantly, a significant portion (33.33%) of this collected fee is redistributed directly back to the remaining USUALx stakers, rewarding those who demonstrate patience and commitment to the protocol.

Yes, you can potentially avoid the direct 10% unstaking fee by swapping your USUALx for USUAL on a decentralized exchange. While this bypasses the protocol's direct tax, it's crucial to understand that you would then be subject to market dynamics. If there's high selling pressure or many users are exiting at once, the market price on the exchange might cause USUALx to trade at a discount compared to its intrinsic value in USUAL, effectively creating a different form of cost or 'slippage' for the user.

USUAL is the native governance token, offering full liquidity but without direct earning capabilities from protocol revenue or distributions. In contrast, USUALx is the staked version, providing holders with both significant Governance Power and Economic Rights. These rights include eligibility for 10% of all future USUAL distributions and a share of various system fees, such as portions of the unstaking fees paid by other users. USUALx holders thus participate more actively in the project's long-term success and value accumulation.

The yield for USUALx is derived from a combination of three distinct sources. Firstly, 10% of all newly minted USUAL tokens are directly distributed to the USUALx vault. Secondly, a portion of various system fees, including unstaking fees from USUALx and early redemption fees from USD0++, are channeled towards USUALx stakers. Lastly, there are plans for a 'Revenue Switch' which, once activated through governance, will direct future protocol revenues generated from the Real World Asset (RWA) collateral backing the stablecoin, to USUALx holders.

The 'Revenue Switch' is a crucial governance-controlled mechanism within the Usual Money protocol. It determines when the interest and revenues generated from the Real World Asset (RWA) collateral, which backs the USD0 stablecoin, begin flowing directly to USUALx stakers. Users frequently inquire about its activation, as flipping this switch signifies a transition for USUALx. It changes USUALx from being primarily reliant on inflationary token rewards to also receiving 'real yield' derived from the protocol's underlying revenue generation, enhancing its long-term value proposition.