Tron Founder Justin Sun Introduced His Controversial New Product! “We Do It Because We Have A Lot Of Money”

Tron (TRX) founder Justin Sun, the latest version of Tron’s algorithmic stablecoin that promises a remarkable 20% annual percentage return (APY) that will be fully subsidized by the Tron DAO of USDD 2.0 announced that it will be released soon.

In a post published on There’s no other reason, it’s just because we have plenty of money. So stop asking me questions like ‘what is the source of return?'” he said.

USDD was first launched in 2022 as a rival to Terra’s now-infamous UST stablecoin. Unlike UST, which collapsed amid market turmoil, USDD survived but remains heavily backed by Tron’s native token, TRX. USDD is reportedly managed by the Tron DAO, which oversees its collateral and operations.

Algorithmic stablecoins such as USDD, crypto para While they aim to be pegged to the US dollar using backed mechanisms, they have faced criticism compared to their cash-backed counterparts such as USDC and USDT. According to analysts, the stablecoin market, whose value exceeds $ 215 billion, is expected to more than double by the end of the year.

USDD has had its share of critics, including from Bluechip, a platform that values ​​stablecoins. Last year, Bluechip gave USDD the lowest stability ranking and raised concerns about its dependence on TRX as a supporting asset and the lack of a transparent governance system:

“USDD does not have a governance system. USDD holders have no legal or code-based protection and are at the mercy of the Tron DAO Reserve.”

The stablecoin’s website claims that USDD is secured by over-collateralization of mainstream digital assets such as TRX and USDT, and the collateral ratio is 120%. According to the site, USDD is backed by $2.6 billion in assets, mostly TRX tokens.

*This is not investment advice.