Tron blockchain has announced plans to boost its USDD stablecoin reserves to 10,500 Bitcoins, 240 million USDT, 1.9 billion TRX, and 8.29 billion TRX in a burning contract.
The co-founder Justin Sun says that a reserve of cryptocurrencies and stablecoins has been created and will be maintained at a minimum of 130% of the USDD in issuance.
The blockchain has termed the collateral ratio guaranteed, adding that it will start publishing real-time updates on the collateral ratio on TRON DAO Reserve’s website starting June 5.
Sun says that the move aims to upgrade the stablecoin, which launched on May 5, to a hybrid model. USDD maintains its peg to the US dollar algorithmically.
USDD was created to reward arbitrageurs for keeping the value pegged to the USD through the trading between TRX, TRON’s token, and USDD. The model has since shifted to hybrid following the collapse of TerraUSD stablecoin.
Source: TRON DAO RESERVE