Tron Blockchain Will Launch USDD Stablecoin on May 5 says Founder Justin Sun

Tron Blockchain

Welcome back to the Tribe! In this post we are going to talk about some recent news involving the Tron blockchain and its founder Justin Sun. Luckily, this time it has nothing to do with his social life and instead is all about development on the Tron ecosystem.

Nothing should be considered investment or financial advice. Enjoy the ride!

Tron Blockchain

Justin Sun disclosed news regarding an upcoming algorithmic stablecoin for the Tron blockchain. The token dubbed USDD goes live on May , 2022, barring any last-minute changes or incidents. Tron’s native cryptocurrency TRX will be leveraged to support the new player in the stablecoin market. Also, both the Ethereum network and the Binance Smart Chain will onboard USDD once it launches.

Sun also plans to deploy $10 billion to maintains USDD’s dollar peg and the reserve will be managed by the Tron DAO. Tron’s stablecoin launch follows recent success in the stablecoin market recorded by Terra’s UST token.

Stablecoin Wave Continues As Tron Prepares USDD Launch

Tron blockchain is gearing up to launch its so-called USDD stablecoin on Thursday (May 5, 2022). Upon launch, both Ethereum and BInance Smart Chain users will receive access to the stablecoin.

Tron’s founder and former Chief Operating Officer Justin Sun confirmed the news on Thursdays (April 21, 2022) via an official announcement. Details from the announcement also disclosed that support for two extra blockchain networks are expected. The BTTC cross-chain solution will reportedly facilitate this additoinal functionality for USSD.

In terms of the mechanism deployed by Tron’s stablecoin, USDD will function as an algorithmic token, much like Terra’s Luna, rather than a traditional stablecoin backed by cash and other financial assets. 

According to Justin Sun, this should ensure that USDD maintains its peg to the US dollar more often than not. The official announcement reads:

“When USDD’s price is lower than 1 USD, users and arbitrageurs can send 1 USDD to the system and receive 1 USD worth of TRX. When USDD’s price is higher than 1 USD, users and arbitrageurs can send 1 USD worth of TRX to the decentralized system and receive 1 USDD. Regardless of market volatility, the USDD protocol will keep USDD stable at 1: 1 against the US dollar via proper algorithms in a decentralized manner.”

Tron Support

In addition to support from Tron’s governance token TRX, USDD will also feature a hefty $10 billion reserve made of highly liquid assets. These assets are reportedly earmarked as collatoral meant to back the stablecoin. 

The mechanism is simliar to how Terra’s UST has a bitcoin-denominated reserve with an estimated worth of $1.63 billion. UST’s reserve also features around $100 million worth Avalanche (AVAX) tokens. 

A decentralized autonomous organization dubbbed the Tron DAO is set to handle custory for the bumper USDD reserve, per the official statment from Sun.

Since the announcement, Terra’s CEO Do Kwon has expressed support for the move saying that every ecosystem should have its own stablecoin. Kwon published a tweet on Thursday that reads:

“@trondao is launching an algorithmic stablecoin with mint-and-burn mechanics called $USDD – mint and burn TRX, redeem against TRX. Decentralized economies deserve decentralized money – every blockchain will run on dect. stables soon. 👏  @justinsuntron”

Notably, NEAR protocol also recently announced plans to launch a stablecoin called USN.

Other News – CoinDCX Raises $135 Million

Major Indian-based cryptocurrency exchange CoinDCX raised a staggering $135 million during a recently concluded Series D funding round. The latest capital raise will help the platform continue to scale its services and expands its employee count from around 400 to over 1000.

Read more here…

Tron Blockchain News

Thanks for reading our post on the recent Tron blockchain news. Justin has not been known for always coming through on said promises, but hopefully this time he will deliver with the Tron team.

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Cheers

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