An Open Letter to the Community Regarding the Issuance of TRON’s Decentralized Algorithmic Stablecoin USDD

Stablecoins have completely ushered in the era of decentralization.

The blockchain world always pursues the decentralization of all centralized things, because after all, our beliefs are always mathematics and algorithms, not violence and power. Now, we have ushered in the most centralized part of the blockchain world, Possibility of decentralization.

TRON DAO will unite mainstream institutions in the blockchain industry to launch USDD, Decentralized USD, the most decentralized stablecoin in human history, using mathematics and algorithms to realize human financial freedom, and it will exist forever without relying on any centralized entity.

In the history of the blockchain, stablecoins have experienced the 1.0 era dominated by the Omni Chain USDT and the 2.0 era dominated by the Tron USDT. Now the blockchain is about to usher in the 3.0 era dominated by the Tron USDD.

In the 1.0 era dominated by the Omni chain USDT, stablecoins do not have their own blockchain and can only be completely attached to the blockchain of Bitcoin. The transfer time of the entire stablecoin takes a long time, more than 30 minutes, and the cost is extremely high. The transfer can only be completed with a hundred dollars, and the number of single-day transactions of the overall blockchain production capacity is compressed to 200,000 transactions per day. The overall stablecoin scale is 1 billion U.S. dollars. Reserved.

In the 2.0 era dominated by TRON USDT, USDT has been migrated to the TRON blockchain across the era, and has an independent decentralized clearing layer. The transfer time has been reduced from 30 minutes to less than one second, and the fee has been compressed from $100 to USD Divided into levels, it is close to zero. The number of single-day transactions of the overall blockchain production capacity has jumped to 10 million transactions per day, and the total amount of single-day liquidation has exceeded 10 billion US dollars. Since its launch in 2019, the total amount of USDT liquidation in Tron has exceeded the cumulative total $4 trillion. It can be said that TRON’s USDT has become the world’s largest stablecoin network since its launch four years ago. The overall scale of stablecoins and financial assets on the chain exceeds US$55 billion. Although the stablecoins in the 2.0 era have reached the high-speed, low-fee, and high-scale standards, the reserves of stablecoins are still managed and reserved by centralized institutions.

After realizing the success of the TRON USDT2.0 era, TRON DAO self-revolutionized and made every effort to create TRON USDD, pushing the development of global human stablecoins to a new level, creating a completely decentralized and trusting in mathematics The stablecoin with algorithms is built on the most efficient and low-cost stablecoin network for human beings, allowing human stablecoins to enter the stablecoin 3.0 era dominated by Tron USDD.

In the 3.0 era dominated by TRON USDD, USDD will continue to maintain the high-speed, low-fee, and high-scale model standards of USDT in the 2.0 era. Completely decentralized, with decentralized anchoring and linked issuance with the standard currency TRX on the chain, when the price of USDD is less than 1 USD, users and arbitrageurs send 1 USDD to the system in a decentralized form and get 1 USD worth of TRX . When the price of USDD is greater than 1 USD, users and arbitrageurs send TRX worth 1 USD to the system in a decentralized form and get 1 USDD. Regardless of market conditions, the USDD protocol will maintain the market rate of USDD at a target 1:1 exchange rate in a decentralized form.

TRON USDD will be officially distributed and circulated on May 5, 2022. It will also enter Ethereum and BSC for circulation through the BTTC cross-chain protocol. It is also hoped that mainstream institutions in the blockchain industry can support it at the same time. TRON, Ethereum, and BSC three versions of USDD.

The development of TRON USDD will be divided into four versions: 1.0 Space, 2.0 Tiangong, 3.0 Moon, and 4.0 Mars, which symbolize the four goals of human beings and TRON to participate in space exploration in the future. In the 1.0 Space version, the development of TRON USDD will be fully entrusted to TRON The United Reserve (TRON DAO Reserve) is managed jointly with mainstream organizations in the industry. At the beginning of its establishment, the TRON DAO Reserve will store and host the 10 billion US dollars of high-liquidity assets raised by the promoters of the blockchain industry as an early reserve to maintain the value of TRON’s USDD. Exchange rate stability and rigid interest rate payment. At the beginning of the establishment of the Tron Joint Reserve, the base risk-free interest rate of USDD was set at 30%, and the relevant decentralized and centralized institutions receiving USDD were coordinated to implement the interest rate.

Decentralized stablecoins no longer need the regulatory standards required by centralized institutions to achieve a completely zero-threshold holding. Decentralized stablecoins will not have any freezing and confiscating authority of any centralized institution, realizing the full sense of Private property is inviolable, and decentralized stablecoins will not have the characteristics of large fluctuations in cryptocurrencies, so as to achieve the purpose of maintaining and increasing wealth in the greatest sense. It can be said that TRON USDD is a small step in the development of TRON stable currency, but it is a big step for mankind to realize ultimate financial freedom.

Our ultimate vision is to make finance a human right, and make financial services, like water and air, a basic right that everyone in the world can enjoy freely, instead of becoming a tool of oppression, sanctions and punishment in today's increasingly complex international situation. Human beings should not only have the four freedoms defined by Roosevelt, including freedom of speech, freedom of belief, freedom from poverty and fear, but more importantly, the fifth freedom, financial freedom, freedom of wealth, and enjoy the inviolability of their own private property. free!

April 21, 2022

Justin Sun
April 21, 2022