$PAID Token Plummets as UsePaid's Payment Mechanism Falters

The Solana-based protocol UsePaid saw its native token $PAID drop 38% in value after X Money, the payment rails it uses to route creator fees, effectively choked off payouts during a massive spike in claimed fees.

On September 27, claimed fees through the platform surged to $1.54 million, 26 times what had been processed the day before. The protocol was barely two weeks old at the time.

UsePaid's pitch is elegant: it intercepts creator fees and routes them to X accounts using X Money's payment rails. Recipients don't even need to sign up. Fees get split 80/20, with the creator getting four-fifths and the remaining 20% buying back and burning $PAID tokens.

The token surged over 410% after launch in mid-September as the protocol quickly gained traction, processing millions in fees and pulling influencers into the orbit of Solana-based token launches. But the September 27 spike triggered processing issues that forced UsePaid to temporarily pause payouts through X Money.