The post Cardano Founder Expresses Discontent as Tron’s USDD Loses Bitcoin Backing appeared on BitcoinEthereumNews.com.

With the Bitcoin withdrawal, USDD is now backed 98.9% by Tron’s native token, TRX, and USDT, worth $19 million. Cardano founder Charles Hoskinson has weighed in on the developing USDD saga in the Tron ecosystem. Hoskinson appeared disappointed with Justin Sun’s move, dropping a GIF in a tweet on Thursday that passed on the expression. https://t.co/jRIkAsSmdb pic.twitter.com/BUBpY9iU2H — Charles Hoskinson (@IOHK_Charles) August 22, 2024 The IOHK founder’s disapproval was seen in a quoted retweet from Bitcoin News stating that Tron Network’s founder Justin Sun was defending his latest move. The news made the rounds late Thursday that Tron’s native stablecoin, USSD, was no longer backed by Bitcoin. What Went Down Sources reported that USDD secretly lost its Bitcoin backing after 12,000 BTC ($726 million) was withdrawn from the stablecoin’s collateral reserve. This meant that the algorithmic stablecoin was now majorly backed by Tron’s native token, TRX. What caught the attention of Hoskinson and other key players in the crypto sector was how the withdrawal was made. The TRON DAO Reserve is the issuer of USDD, and as an autonomous governance system, any major decision regarding the blockchain ought to be made by a community vote. However, the 12,000 BTC was moved from the algorithmic stablecoin without a community vote or public awareness, bringing into question the decentralized nature of the TRON DAO. Notably, the only decision put to the vote by the TRON DAO was a May 2023 decision on whether to use TRX from USDD’s TRX burning contract. Sun Reassures Community Amidst the chaos, Sun took to X to reassure USDD users and the Tron community that everything was under control. He said the move was not mysterious and likened USDD to DAI, a stablecoin from MakerDAO. Regarding the decentralized stablecoin USDD, its mechanism is similar to MakerDAO’s DAI…

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Filed under: News - @ August 23, 2024 7:21 am