USUAL distribution

Overview

The USUAL token distribution system is designed to ensure fair, efficient, and community-driven emission. Tokens are distributed through a daily mechanism, which adjusts based on the protocol's performance indicators, such as TVL growth and interest rates. Emissions are allocated to on-chain vaults, like UsualX and UsualS, as well as off-chain participants through a merkle proof validation process. To prevent excessive inflation, emissions are capped and decrease over time as the TVL grows. Governance controls the allocation of tokens across various categories, such as liquidity providers, stakers, and market makers, ensuring flexibility and alignment with protocol growth. For more information see USUAL Distribution Model.

High level flow of the USUAL distribution model