On May 5, Founder of TRON, Justin Sun spoke out again on Twitter about TRON DAO Reserve, stating that “the USDD decentralized stablecoin has been officially launched”; this is shortly after the April 21 launch of TRON DAO Reserve, which represents the first attempt to overthrow the global traditional financial system in the future.
Those who are familiar with Justin Sun know that he has been advocating blockchain technology and cryptocurrencies since 2017, more than 5 years. Although the identity has changed from the founder of TRON to Grenada’s ambassador to the WTO, the idea of changing the traditional global financial landscape has never changed. The four major stages of human exploration of the universe are referred to as USDD development stages, named “Space, Tiangong, Moon and Mars”, which also show the ambition and patience of Justin Sun to gradually bring USDD to the global financial market.
The Federal Reserve raises interest rates, USDD heading toward the wind
Of course, neither the establishment of the TRON DAO Reserve nor the issuance of USDD is a merely business matter. Just one day before Justin Sun posted on Twitter, the Federal Reserve announced that it would raise interest rates by 50 basis points to achieve a soft landing for the economy. It was the second move after the first interest rate hike in March this year, and also the Fed’s largest interest rate hike since 2000 to keep the U.S. economy out of recession. Although Federal Reserve Chairman Jerome Powell has repeatedly stated that the action is aimed at battling record-high inflation and stabilizing prices, former U.S. Treasury Secretary Larry Summers and Harvard economist Alex Domash have consistently taken the opposite view and believe that the Fed’s move will almost certainly lead to a deep recession.
In addition, Jerome Powell has announced that he will begin reducing the size of the balance sheet in June. The balance sheet reduction will have a significant impact on the overall economy. Some analysts fear that a rapid balance sheet reduction could trigger a new cycle of economic crises.
Governments, institutions, and individuals who are passively waiting for the Fed to raise interest rates, even though they are still in the rate hike dividend phase at the moment, need to take precautions and wait for the right time to find new investment opportunities. The birth of the USDD seems to offset the consequential problems that can arise from interest rate hikes.
Imagine what would happen if the economists’ predictions to the contrary came to pass: the economy would go through a long recession, first in the United States and then throughout Europe. The introduction of the USDD will undoubtedly create unity among investors.
Moreover, the dual insurance mechanism that the TRON DAO Reserve has established for the USDD provides stability: on the one hand, anchoring the U.S. dollar and maintaining an exchange ratio of less than and equal to 1 to ensure the stability of the holder’s assets; on the other hand, if the value of the USDD exceeds the price of the U.S. dollar, the appreciating part will use TRX to make up the difference.
The preservation and appreciation of assets are converted between USDD, U.S. dollar, and TRX. The concept of a new safe haven inherent in the USDD also provides a new option during a potential economic depression.
USDD adapts to the market, and circulation exceeds 100 million US dollars
Justin Sun’s grasp of the global financial situation that led to the launch of USDD at this moment is impeccable; Furthermore, the four stages of development of the USDD iteration of decentralized network optimization in the previous six months, which he calls “Space 1.0, ISS 2.0, to the Moon 3.0, Mars 4.0,” appear to have a natural drive to boost the global economy.
Meanwhile, USDD was launched for a reason. Justin Sun planned everything from the ground up, and the original establishment of TRON DAO Reserve provided a nice, conducive environment for USDD. The issuance of USDD’s 999.9 billion TRC10 is also mentioned in the White Paper.
USDD has so far been listed on Sunswap, Sun.io, Curve, Uniswap, Ellipsis, Pancakeswap, Kyberswap, etc., with an initial total supply of one hundred million. Through the cross-chain protocol BTTC, both of the circulating supply on Ethereum and BSC are near twenty million.
It is worth noting that there were more than $100 million in circulation when USDD was officially launched, which shows the high demand of the market for decentralized stablecoins.
Nevertheless, the space version 1.0 of USDD is only a minor test for Justin Sun, and the completion of further modifications of versions 2.0, 3.0, and 4.0 is very important to bring him closer to his goal of “financial freedom of mankind through mathematics and algorithms”.
Perhaps this sounds quite different from Justin Sun, who used to be a vigorous player, but this slowed-down, step-by-step strategy, on the other hand, reflects his deep thinking about the market. From ancient times to the present, the theme of human “exploration” has remained unchanged. 500 years have passed from the era of great voyages in the Columbus era to the present great era of space exploration. Today, Justin Sun has referred to the stages of USDD development as “Space, Tiangong, Moon, and Mars,” showing that his determination to apply blockchain technology to alleviate the current financial crisis is long-term, just as human exploration of the universe is both necessary and full of challenges.