UsePaid, a Solana-based protocol for routing creator fees to X accounts, introduced an on-chain claims portal on September 28. This move follows technical issues with the X Money integration, which struggled to handle a surge in transaction volume.
On September 27, the platform recorded $1.54 million in claimed fees, marking a 26-fold increase compared to the previous day. The protocol, which launched in mid-September, had previously processed over $1.4 million in cumulative payouts.
The surge in activity forced the team to temporarily pause X Money payouts and implement a daily withdrawal cap of $750 per recipient. These operational difficulties led to a 38% decline in the value of the native PAID token.
The protocol operates on an 80/20 fee split, where 20% of fees are used for a buyback-and-burn mechanism. The recent market drop highlights the correlation between the token's value and the platform's ability to maintain continuous payout operations.
