ME News reports that on October 28 (UTC+8), USD.AI published a statement outlining its plans for protocol revenue distribution and business model arrangements. It stated that the net interest margin from sUSDai, after deducting CHIP Foundation costs, will be entirely used for programmatic buybacks of CHIP, effective immediately; initiation fees and the majority of sale proceeds will be reinvested by USD.AI Inc. to reduce loan friction and improve turnover speed; 40% of sale proceeds will be allocated to the Yield Reserve to maintain sUSDai’s 7% CHIP Hurdle Rate. USD.AI stated its long-term goal is to achieve net deflation of CHIP. (Source: Foresight News)
USD.AI to Launch Programmatic CHIP Token Buybacks
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Summary
On October 28 (UTC+8), USD.AI announced a new token launch initiative to allocate sUSDai’s net interest spread—after deducting CHIP Foundation costs—toward programmatic CHIP token buybacks. Effective immediately, the plan will reinvest issuance fees and the majority of sale proceeds to reduce loan friction and accelerate turnover speed. Forty percent of sale proceeds will be directed to the Yield Reserve to maintain a 7% CHIP hurdle rate for sUSDai. This AI + crypto news initiative supports USD.AI’s long-term objective of achieving net CHIP token burn.
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