Important points from “Although utilization rose, protocol and supply revenue declined, as more providers slashed fees to incentivize adoption”:
1. Increased utilization: Despite the decline in revenue, there was a notable rise in the utilization of services or products offered by providers. This indicates that more individuals or organizations were adopting these offerings, possibly due to their increasing popularity or effectiveness.
2. Decline in protocol and supply revenue: The revenue generated specifically from protocol and supply-related activities experienced a decline. This suggests that providers were facing challenges in monetizing these aspects of their offerings, which could be attributed to various factors such as increased competition or changes in market dynamics.
3. Fee slashing to incentivize adoption: To encourage more users to adopt their services or products, providers resorted to slashing fees. This strategy aimed to make their offerings more affordable and attractive to potential customers. However, this approach resulted in a decline in revenue, as the reduced fees impacted the overall financial performance of the providers.
In summary, despite an increase in utilization, providers experienced a decline in revenue from protocol and supply activities. This was likely due to the providers’ decision to slash fees in order to incentivize adoption. While this approach may have attracted more users, it impacted the financial performance of the providers negatively.