JAKARTA - Tron founder Justin Sun provided clarification after the Tron DAO Reserve quietly removed about 732 million US Dollars (Rp11 trillion) Bitcoin from its reserves. This move sparked concerns among the crypto community about the decentralization rate of Tron DAO, which has been claimed to be one of its advantages.
The abolition of about 12,000 Bitcoins, which is one of USDD underwriters' assets, was carried out without going through a vote by DAO, a mechanism commonly used in decentralized autonomous organizations to make important decisions. This raises questions about the true decentralization of Tron DAO in USDD management.
Quoted from DL News, Justin Sun, in his official statement via platform X, tried to calm these concerns by stating that this kind of adjustment was nothing new. Previously, Tron DAO Reserve also often made adjustments based on guarantee factors,' said Sun, referring to the ratio between stablecoin and the number of stablecoins published.
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Currently, USDD, which has a supply of around 749 million US Dollars (Rp 11 trillion), is almost entirely supported by TRX, a volatile native Tron blockchain token. The official USDD website lists a guarantee ratio of around 230%, meaning the value of assets supporting USDD is more than double the value of the outstanding stablecoin.
However, while Sun stated that USDD has a long-term guarantee ratio that exceeds 300%, this Bitcoin removal move poses skepticism. Some industry watchers argue that this action suggests that Tron DAO may not be as decentralized as they claim.
The USDD has also drawn a number of criticisms from various parties, including the Bluechip stablecoin rating agency, which ranks the lowest for USDD and strongly does not recommend its use. Bluechip noted that the wallet that previously stored Bitcoin to support USDD was claimed to belong to the Huobi exchange. In addition, they also criticized the USDD's short-term stability mechanism which was deemed ineffective.
However, Sun remains optimistic and mentions that the USDD mechanism is not mysterious, even comparing it to the DAI, a decentralized stablecoin from MakerDAO. Sun also hinted at future updates that might answer some criticisms leveled against USDD.
"In the near future, Tron DAO Reserve plans to upgrade USDD to become a more competitive decentralized stablecoin in the market," Sun concluded.
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