Justin Sun Reveals $750 Million Bitcoin Transaction: No Longer Supported!
TRON founder Justin Sun's statements about $750 million worth of Bitcoin have become a hot topic.
Tron founder Justin Sun announced that the USDD stablecoin is no longer supported by Bitcoin, warning users not to worry.
Tron DAO Reserve withdrew approximately $750 million worth of Bitcoin collateralized by USDD on Wednesday. Launched in 2022 as a competitor to Terra's UST token, algorithmic stablecoin USDD is now predominantly backed by Tron's native token TRX.
Justin Sun stated that USDD is not capital efficient because its "long-term collateralization ratio exceeds 300%." For this reason, Tron DAO Reserve, which manages USDD's collateral, announced that it has withdrawn approximately 12,000 Bitcoin.
Sun said that USDD’s mechanism is similar to MakerDAO’s DAI and is “not mysterious,” and anyone with more than the specified amount of collateral in the system can freely withdraw collateral without any approval.
This change in strategy has brought back to the agenda the issues that have long been controversial about algorithmic stablecoins, especially regarding decentralization. USDD, which was launched in 2022, was supposed to be governed by a DAO, but almost no decisions regarding the stablecoin were put to a community vote.
Users also noted that the announcement regarding USDD’s collateral was made from Justin Sun’s personal account instead of the Tron DAO Reserve. To date, DAO members have only voted on one issue, the use of TRX tokens burned in May 2023.
