An unprecedented sustainable procedure was developed to produce functionalized vinyl monomers H2C=C(R)(FG) starting from a mixture of sulfur and selenium compounds as a functional group donor (FG = S or Se). The reaction serves as a model for efficient utilization of natural resources of sulfur feedstock in oil and technological sources of sulfur/selenium. The catalytic system is reported with amazing ability to recognize SH/SeH groups in the mixture and selectively incorporate them into valuable organic products via wastes-free atom-economic reaction with alkynes (HC CR). Formation of catalyst active site and the mechanism of the catalytic reaction were revealed by joint experimental and theoretical study. The difference in reactivity of mu(1)- and mu(2)-type chalcogen atoms attached to the metal was established and was shown to play the key role in the action of palladium catalyst. An approach to solve a challenging problem of dynamically changed reaction mixture was demonstrated using adaptive tuning of the catalyst. The origins of the adaptive tuning effect were investigated at molecular level and were found to be governed by the nature of metal-chalcogen bond.