TRON, dubbed a decentralized blockchain-based operating system, is one of the largest blockchain projects. As of April 2022, TRON has over 90 million user accounts, more than 3.1 billion total transactions, and over $8 billion in total value locked (TVL).
Following a series of announcements, TRON has gathered momentum in recent days, outperforming every crypto in the top 100. So, what is the reason behind this?
Recent Developments
On May 5, H.E. Justin Sun, the founder of TRON, announced the launch of the much-anticipated TRON-issued algorithmic stablecoin, called “Decentralized USD,” or USDD. The USDD stablecoin was launched by TRON and a number of blockchain leaders.
The USDD has already been listed by the likes of SunSwap, Uniswap, PancakeSwap, and Ellipsis. According to Sun, the USDD is algorithmically pegged to the U.S. dollar to achieve the overarching goal of financial freedom for everyone.
According to the TRON DAO, the stablecoin will have an initial total supply of 66,560,006.61 on TRON, 3,100,000 on Ethereum, and 13,100,000.1 on BNB Chain through the cross-chain protocol BitTorrent Chain (BTTC).
Within hours of its launch, the TRON DAO has announced three members and whitelisted institutions of the TRON DAO Reserve. Poloniex Exchange joins Amber Group and Alameda Research as members of the DAO.
According to the white paper of USDD, the peg will be sustained by creating and destroying the USDD supply by a mint-and-burn mechanism and an arbitrage swap. Already, more than $2 billion TRX has been burnt.
TRON recently announced the allocation for the $1,111,111,111 ecosystem fund they revealed in November 2021. Sun V2.0 and JustLend were the first recipients of the funds, receiving $24.899 million as liquidity mining rewards.
TRON will distribute another $150 million as mining and staking rewards through various other competitive protocols in the ecosystem, leaving $600 million.
Future Events
The issuance of the USDD stablecoin marks the first of a four-stage road map. With 1.0 completed, the TRON DAO has turned its attention to 2.0, dubbed ISS, and involves the Testnet launch of the USDD decentralized network.
After the USDD decentralized testnet network goes live, it will enter the Moon phase, where the USDD decentralized network will be released officially. Then, finally, TRON will launch the USDD Mainnet in phase 4.0, Mars.
TRON will devote the remaining $600 million of its ecosystem fund to broaden its DeFi landscape by investing in a wide range of unique and innovative DeFi projects on the TRON network.
Price Updates
Tron’s native cryptocurrency TRX got off to a strong bullish start in May, gaining more than 45% in the first five days of the month. On May 5, when other altcoins struggled, TRX was one of the best performers, gaining more than 10%.
TRON’s May 1 – 5 price chart. Source: CoinMarketCap
TRON’s rally in May saw the price of TRX rise from $0.064 to set a 90-day high at $0.08912. TRX now trades at $0.08066, dropping 3.7% of its value in the crypto market correction.
The 7D price chart of TRON (TRX). Source: CoinMarketCap
The rally has helped TRON reclaim its position in the top 20 cryptocurrencies ranked by market cap. As of this writing, TRON is ranked as the 19th largest crypto project, with a market cap of $8.23 billion.
On The Flipside
Community
In addition to being one of the most innovative projects and having a strong development team, TRON is backed by loyal community members. The launch of USDD and TRX’s recent rally saw members of the TRON community reaffirm their belief in the project.
One user, @Zen_Eustass, wrote;
Before the rally, which saw TRX become the 19th largest crypto, Drew Wise, wrote;
Debo Majumder is more bullish about TRX; he wrote;
By offering a 30% annual yield on USDD initial deposits, TRON aims to outbid Terra’s UST, which is one of the fastest-growing stablecoin projects.
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Source: Cryptocurrency - investing.com
