In a controversial move, USDD, the algorithmic stablecoin on the Tron blockchain, has removed approximately 12,000 bitcoins from its collateral reserves. This action was taken despite the lack of approval from the TRON DAO Reserve, which supposedly governs the stablecoin.
Originally intended to mirror the Terra model, USDD’s ambitions were scaled back following the collapse of Terra-Luna. While the USDD transparency page previously listed 12,000 BTC at a specific address, this address is no longer included.
Despite claims of decentralized governance through a DAO, there’s no evidence of any vote corresponding to this change. In fact, the DAO has only held one vote in its history, back in May 2023, highlighting a potential misunderstanding of the concept of ‘burned’ tokens.
This isn’t the first time USDD’s collateral management has raised eyebrows. A significant portion was stored at HTX without consulting the DAO.
Currently, USDD has a total supply of roughly $744 million, surpassing other stablecoins like TrueUSD, Tether Gold, and even its inspiration, Terra Classic. However, its ‘Peg Stability Module’, designed for easy swaps with other stablecoins, is nearly depleted, holding only $19 million USDT.
