Tron’s Justin Sun Announces ‘Most Decentralized Stablecoin’ with $10 Billion of Crypto Collateral

Justin Sun, the founder of Tron (TRX), has announced that he is launching a new algorithmic stablecoin, which he says will become “the most decentralized stablecoin in human history.”

Justin Sun, the founder of Tron (TRX), has announced that he is launching a new algorithmic stablecoin, which he says will become “the most decentralized stablecoin in human history.”

Decentralized USD (USDD): The Most Decentralized Stablecoin

The open letter from Sun explains that the USDD will be “a fully decentralized stablecoin underpinned by mathematics and algorithms.”

In the Twitter thread where he shared the details of the project, Sun explained that in the history of blockchain, stablecoins have gone through the 1.0 and 2.0 eras, represented by Omni-based and TRON-based #USDTs.

According to Sun, the stablecoin named Decentralized USD (USDD) will mark the beginning of the “Stablecoin 3.0 era.” He opines that the USDD will decentralize “the blockchain world’s most centralized territory.”

He also explains that the TRON DAO reserve will provide custody service for $10 billion in highly liquid assets for the USDD. The fund will be “raised from initiators of the blockchain industry” and act as a reserve to the USDD stable.

In addition, the TRON DAO will offer a risk-free interest rate of 30% per annum.

On The Flipside

Why You Should Care

The USDD could be the next phase for stablecoin, as it will allow people to mint and burn with TRX and hold billions in crypto reserves.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia