Former Tron CEO has announced that TRON DAO intends to create a decentralized stablecoin sort of based on the USD
In an open letter published today, the resigned CEO of the Tron Foundation, Justin Sun, announced that the crypto space is entering the Stablecoin 3.0 era, and TRON DAO intends to create the first decentralized algorithmic stablecoin USDD—Decentralized USD.
According to a tweet from USDD network, the stablecoin will launch on May 5.
💪With the strong faith in the capabilities of mathematics and algorithms, rather than violence & power, finally, we see the possibility of decentralizing the blockchain world’s most centralized territory. 🚀
— H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) April 21, 2022
Stablecoin 1.0 and 2.0 eras
In the letter, Sun referred to the previous Stablecoin 1.0 and Stablecoin 2.0 eras as represented by USDT based on Omni and Tron, respectively. Tron’s USDD will be the first stablecoin in the 3.0 era of this part of the blockchain space.
Referring to the first Omni-based USDT, Sun said that it was based on the Bitcoin network with slow and expensive transactions that took up to a half hour and could sometimes cost $100. Besides, the USD reserves that backed USDT have been stored in banks that the emitters partnered with.
Describing the “TRON-based 2.0 era” of stablecoins, Sun pointed out that USDT, which runs on Tron, takes less than a second to transact for a fee of only a few cents rather than $100. Tron-USDT was launched back in 2019, when Tether partnered with the foundation. However, the USD reserves are still held in centralized financial institutions.
“Decentralized USD” from Tron based on TRX
Talking about the USDD that Tron will launch and inject into circulation on May 5, Sun has called it the most efficient stablecoin network with the lowest fees in the DeFi system globally. That would make it a beginning for the Stablecoin 3.0 era.
According to Justin Sun, USDD will not use the services of any centralized financial institutions. The stablecoin will be backed by Tron’s native coin, TRX. He confirms that the token will be issued in a decentralized manner and that regardless of the price—if USDD trades lower than $1—users will still benefit.
Special algorithms will help the protocol to keep USDD stable against USD, whatever volatility is.
Aside from Tron, USDD will also be issued on Ethereum and BNB thanks to the BTTC cross-chain protocol.
Does Sun dream of Elon Musk’s business achievements?
Sun has revealed the four stages of the USDD roadmap, which seems to be inspired by the dreams and ambitions of none other than Elon Musk: stage one is called “Space,” stage two is “ISS,” stage three is “Moon” and the last stage is called “Mars.”
Commenting on these titles, Sun revealed Tron’s ambitions to explore space, which to some may sound like a worthy future rival to Elon Musk’s SpaceX.
In the 1.0 stage, it will be TRON DAO Reserve and some other large DLT institutions that will back USDD.
Once established, TRON DAO Reserve will create a basic interest rate of 30% annually to protect itself from risk.
I believe that the TRON-based USDD will be one of the strongest cornerstones for the fifth freedom of humanity. USDD will be TRON DAO’s most significant contribution to the world’s financial freedom after the introduction of TRC-20 USDT. Let us work together towards more freedom for all the seven billion people worldwide and towards a better tomorrow.