The $USUAL
token ecosystem is designed to benefit from deflationary pressure
over time, making the potential for reaching its maximum supply of 4 billion tokens increasingly unlikely. Here’s an analysis of the token supply mechanics and their
long-term implications for value and scarcity.
Supply Dynamics: Limited Circulating Tokens
Despite the official maximum supply of 4 billion USUAL tokens, current
mechanisms suggest that this threshold will likely never be reached. On a daily
basis, over 1 million tokens are issued through staking rewards and incentives,
but the majority of these tokens are reinvested back into staking rather than
circulating freely. This process keeps a substantial portion of the supply locked
away, limiting the number of tokens available in the open market.
Staking: A Catalyst for Token Scarcity
A significant portion of USUAL’s circulating supply—37.8%—is already staked, and
this percentage is projected to increase. If more than 50% of the circulating supply becomes staked, the effective supply in the market will shrink dramatically. This
reduction in circulating tokens will likely lead to greater demand for those that
remain available, contributing to potential price increases as scarcity sets in.
Revenue Switch and Deflationary Effects
The introduction of the Revenue Switch mechanism, which rewards stakers with
USD0 weekly, serves as an additional incentive for investors to lock their tokens in staking rather than sell them. This reduces the available tokens in the secondary
market, supporting long-term holding and promoting a deflationary effect. As the
rewards compound daily, the token supply continues to shrink, further incentivizing holders to maintain their stakes, which in turn reduces market liquidity.
Long-Term Impact: Stable Supply and Rising Demand
As staking participation continues to grow and more tokens are held in staking
pools, the circulating supply of USUAL will decrease. This scarcity, paired with
compounding rewards and strong incentives for long-term holding, will drive
demand for the limited number of available tokens. Over time, the actual
circulating supply is expected to stabilize well below the 4 billion token limit,
ensuring sustained value growth for those invested in the ecosystem.
Conclusion
The combination of high staking rates, revenue incentives, and the compounding
nature of rewards positions USUAL for a deflationary future. While the max supply
is set at 4 billion, the actual circulating supply is likely to decrease, creating a
scarcity effect that will increase demand and drive long-term value. For investors
and stakers, this presents a compelling opportunity for sustained growth in the
USUAL ecosystem.
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