OpenUSD Advantages:

Free Mint and Burn: OpenUSD plans to offer a fee-less mint and burn mechanism to all partners which is a competitive advantage over already established stablecoins where redeeming partners pay a minimal redemption fee.

Revenue Share: OpenUSD will also share reserve revenue with all participating partners according to usage. This is an idea to create a win-win situation for all partners. An idea it claims only the issuing partner enjoys with the already established stablecoins.

A Consortium: A consortium where everyone has a voice. OpenUSD partners will have a voice in the growth and sustainability of the project. All partners will be involved, and it will be governed independently to avoid a single-company control.

Public Arguments of OpenUSD Survival:

Speculators have argued that most consortiums have always ended up in a failed partnership. The argument rests on the possibility of the partners reaching agreements and making key decisions without delaying the progress of the project’s growth and development.

While a free mint and burn mechanisms will exist. Jeremy, CEO of Circle argues that it’s not realistic since the project will eventually need funding to run and grow its business over time. He argues that market behavior is unlikely to allow the sustainability of the mechanism and that Circle already understands this and addressed it with a contractual mechanism vs a blanket fee exemption.

Moreso, former Enterprise Research Analyst at Messari, Sam Ruskin, tweeted that the new stablecoin’s model could pose a competitive challenge to USDC because of its three core design principles. He argues that Circle could be forced to expand its revenue-sharing agreements and find new distribution partners.

More arguments also arise with liquidity for smaller issuing partners and how possibly smaller issuing partners will manage demand and liquidity redemptions with a free mint and burn mechanism.