USDD is a stable-priced cryptocurrency released by TRON DAO Reserve. It will include an incentive structure and responsive monetary policy, allowing USDD to self-stabilize against price swings and consolidate its value as a settlement currency.
Diversified use cases can boost a currency’s value and growth. Scale impact is essential to fiat money’s widespread acceptability and long-term usage as a medium of trade. A decentralized currency protocol with a stable price will extend bitcoin use cases, making it more accessible and impacting blockchain and the real economy.
USDD handles short-term price changes and cyclical price risks with its flexible monetary policy and minting system.
First, the USDD stablecoin protocol chooses which asset USDD should peg. Stability is relative and sticking to a specific asset will meet the needs of more users.
Second, the TRON network is where users utilize the USDD protocol. TRON is a decentralized network in which the market sets token prices. Because of this, the stablecoin system needs a way to feed in costs that works well and stays stable.
Finally, the protocol should have tools to control the market if the price of a currency starts to move away from the original plan. It will keep the price of the currency stable.
USDD Defines Currency Stability
The USDD protocol wants to meet consumers’ need for stable digital currencies by letting them use USDD to pay for things online. The USDD protocol will tie to the USD, the most widely used fiat currency in the world. It will make the USDD-USD system stable, decentralized, and hard to change. The USDD protocol will show how money works and bridge the gap between digital assets and how one can use them in real life.
Since the price of USDD on the secondary market have no controls from the TRON network on which the USDD protocol runs, the system must depend on a decentralized price oracle to evaluate an accurate price. Moreover, the USDD protocol flows on the TRON network. TRX, the native token of the TRON network, is the best way to protect against USDD price changes. When pricing USDD, the USDD protocol uses TRX as the main currency.
USDD’s Post-Launch Visions
USSD will launch on May 5, 2022 and will enter circulation. Justin Sun, the founder of TRON, announced the release. The first minters of the token will be its whitelisted institutions and the TRON DAO Reserve. It will be the issuance of USDD 1.0 Space. Through the cross-chain protocol BitTorrent Chain, there will be a supply of 66,560,006.61 on TRON, 3,100,000 on Ethereum, and 13,100,001 on BNB Chain at the start (BTTC).
TRON blockchain will be the world’s largest stablecoin network after four years. TRC-20 USDT circulation supply is $41 billion, surpassing ERC-20 USDT. The TRON network has settled and cleared over $4 trillion in financial assets, including on-chain stablecoins. TRON DAO Reserve will be the blockchain industry’s first decentralized account. The goal of the TRON DAO Reserve is to protect the blockchain industry and cryptocurrency market, stop panic trading caused by financial crises and lessen the effects of deep and long-lasting economic downturns.
The TRON DAO Reserve will collect $10 billion in early-stage reserves over six to 12 months. It will aim to receive more liquid assets and whitelist compliance institutions as stakeholders as a decentralized organization.
Furthermore, there will be a USDD 2.0: ISS on October 10 of this year, wherein the testnet of the USDD decentralized network will go live. It will include the pre-release of TRON v5.0 and its deployment on TRON Testnets. A month after, on November 30, they will release the TRON v5.0 that supports USDD. It will be the USDD 3.0: Moon. USDD will then use decentralized minting, swapping, and burning ultimately. TRON Mainnet now has the right to make new tokens and burn old ones.
Finally, for USDD 4.0: Mars, USDD Mainnet will be live on December 30, 2022.