Justin Sun said that amid tighter regulation of Steblecoin, he intends to launch a decentralized steblecoin backed by TRX and the U.S. dollar in May.
Tron founder Justin Sun, the outgoing CEO of the project and now Grenada’s ambassador and permanent representative to the WTO, announced plans to launch a decentralized TRX-based algorithmic steblycoin backed by the U.S. dollar. According to an official statement, “His Excellency” Justin Sun, the Stabelcoin will have a USDD ticker. The new asset is scheduled to launch on May 5, 2022.
“Stablecoin will be available to users of Etherium and Binance Smart Chain. Sun explained that interaction with the two additional Blockchains will be possible thanks to the BTTC interconnect protocol”he added
According to the former TRON head, USDD “will not rely on any centralized institutions for redemption, management and storage. It will be fully decentralized internally and backed by Tron (TRX) cryptocurrency. Going forward, the USDD Stablecoin will be pegged to the U.S. dollar 1:1.
“When the price of USDD falls below $1, users and arbitrageurs can send $1 to the Blockchain and receive TRX for $1. When the price of USDD exceeds $1, users and arbitrageurs can send TRX for $1 to the decentralized system and receive $1. Regardless of market volatility, the USDD protocol will keep USDD stable at 1:1 against the US dollar through the proper algorithms, in a decentralized manner”explained the former Tron CEO
According to Sun, USDD’s roadmap for Tron’s launch will consist of four phases, named after humanity’s efforts to explore space: 1.0 Space, 2.0 ISS, 3.0 Moon and 4.0 Mars.
The Tron founder added that the USDD will be managed by the TRON DAO reserve and large Blockchain-based institutions. The Tron DAO will be tasked with holding “$10 billion in highly liquid assets raised from Blockchain industry initiators.” The funds will be used “as an early-stage reserve to maintain a stable exchange rate with the U.S. dollar and ensure full convertibility”.