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Usual Protocol activates revenue switch amid redeem function debate

The creators of the USUAL token and USD0 stablecoin ecosystem have launched the Revenue Switch, a mechanism that distributes 100% of the protocol's revenue to USUALx stakers. This initiative aims to incentivize long-term staking and support sustainable protocol growth. The Revenue Switch was activated on January 13, 2025, allowing USUALx holders to receive protocol-generated revenue in USD0. The USUAL token is currently trading at $0.5319 with a market capitalization of $275.68 million. However, the protocol has faced criticism for updating the redeem function, which allows for temporary suspensions of redemptions under certain conditions. This change has raised concerns about control and decentralization. The introduction of the Revenue Switch and adjustments to the redeem function are part of USUAL's strategy to establish itself as a leading DeFi protocol. The success of the Revenue Switch may influence future practices in the sector, while the protocol's response to community concerns will impact trust and adoption.

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