Following the collapse of the TerraUSD (UST) algorithmic stablocoin, TRON developers have announced a plan to create redundant collateral for the USDD stablocoin.
According to Tron creator Justin Sun, the reserve will be maintained at a minimum of 130% of the total USDD issued.
Beginning June 5, developers will begin posting real-time updates to the collateral ratio on the TRON DAO Reserve website.
The reserve currently consists of 14040 bitcoins (about $418 million), $140 million and 1.9 billion TRX, as well as 8.29 billion TRX that are under contract to burn.
“We want to upgrade USDD to a hybrid model. So, on the one hand, we have an algorithmic stablocoin – the algorithm that makes stablocoin stable – on the other hand, we have a TRON DAO Reserve,” Sun said.
TRON said that steiblocoin reserves include bitcoin, TRX, USDC, USDT, TUSD and USDJ.
“All bitcoin addresses will be signed so that everyone knows that these bitcoins belong to us,” San added.
He also said that the creation of so-called “decentralized” steblecoins, which cannot be interfered with by regulators, is an urgent need for the crypto industry.
Sun added that Luna Foundation Guard, which helped secure UST – mismanaged the situation by trying to sell to panicked investors.
“We have to stay one step ahead of the market. Basically, we want to be involved in stabilizing the market – primarily in reducing volatility,” he said.
Currently, most of the reserve is funded directly by TRON. However, according to Sun, the company soon hopes to raise external capital from investors.