Tron’s Justin Sun Reveals Decentralized Algorithmic Stablecoin USDD

Tron's Justin Sun Reveals Decentralized Algorithmic Stablecoin USDD

On April 21, Justin Sun, the founder of Tron, announced the launch of a decentralized algorithmic stablecoin called USDD. Sun said on Thursday that the USDD Network willprovide custody service for the $10 [milliard] worth of highly liquid assets raised from blockchain industry initiators and use them as an early-stage reserve.

Tron to Launch a Native Stablecoin Called USDD

Justin Sun from the Tron network has og Messari a new stablecoin issued on top of the blockchain Tron. Det announcement was also published on hejustinsun.com in a blog post calledAn Open Letter on the Issuance of USDD, a Decentralized Algorithmic Stablecoin on Tron.The letter explains how stablecoins have evolved from theOmni-USDT 1.0 erato decentralized algorithmic stablecoins. The blog post details that the Tron DAO has partnered withmajor blockchain playersin order to launch USDD. The blog post further claims USDD will bethe most decentralized stablecoin in human history.

Trons USDD launch follows the exponential climb of a few decentralized stablecoins. First Makerdaos DAI propelled to the top spot in terms of market capitalization among stablecoin as it offers an over-collateralization method in order to keep its dollar peg. In more recent times, Terra’s UST has surpassed DAIs market valuation and it also offers an algorithmic reserve method in order to keep its dollar peg. Terra’s UST is now the third-largest stablecoin project, as it commands a $17.89 billion market capitalization.

In fact, USDD operates an awful lot like Terras UST and Sun explained on Thursday it will be backed by $10 billion in crypto reserves to start. “In the Stablecoin 3.0 era, USDD will not rely on any centralized institutions for redemption, management, and storage,” the blog post on hejustinsun.com notes. “In the Stablecoin 3.0 era, USDD will not rely on any centralized institutions for redemption, management, and storage. Instead, it will achieve full on-chain decentralization.The blog post adds:

USDD will be pegged to the underlying asset, TRX, and issued in a decentralized manner. When USDDs price is lower than 1 USD, users and arbitrageurs can send 1 USDD to the system and receive 1 USD worth of TRX.

Terra Founder Do Kwon congratulates Tron DAO and Justin Sun

While a number of individuals on Twitter called Justin Suns and Trons new stablecoin aUST lookalike,” Terra’s founder Do Kwon spoke about the comments directed at USDD. “This should be obvious butThe more carmakers go electric, Tesla wins,” Do Kwon said. “Similarly, the more blockchains issue their own sovereign stablecoins, UST wins. The true moon will be found in helping as many communities become self sovereign as possible.

In another tweet, Do Kwon congratulated the Tron DAO and Justin Sun. Terra’s founder said:

Tron DAO is launching an algorithmic stablecoin with mint-and-burn mechanics called USDDmint and burn TRX, redeem against TRX. Decentralized economies deserve decentralized moneyevery blockchain will run on [decentralized] stables soon.

Trons new stablecoin has been a topical conversation on social media on Thursday. While USDD will allow people to mint and burn with TRX and hold billions in crypto reserves, some people suggested the project should hold bitcoin (BTC) as well. Moreover, Suns tweet on Thursday further noted that the Tron DAO reserve willset its basic risk-free interest rate to 30% per annum.

What do you think about Trons and Justin Suns new USDD stablecoin? af den digitale valutaøkonomi med.