Charles Hoskinson Disapproves of Justin Sun's Secret Bitcoin Removal From USDD Reserve

Cardano founder Charles Hoskinson has weighed in on the developing USDD saga in the Tron ecosystem. Hoskinson appeared disappointed with Justin Sun's move

Cardano founder has expressed disappointment over Tron founder Justin Sun’s latest move, which saw Tron’s native stablecoin, USDD, lose its Bitcoin backing.

After 12,000 BTC ($726 million) was withdrawn from the stablecoin’s collateral reserve without a community vote or public awareness, key players in the crypto sector questioned the decentralized nature of the TRON DAO.

However, Sun defended the move, stating that any collateral holder could withdraw funds from the stablecoin’s reserves without authorization as USDD’s collateral reached 300%, exceeding the threshold of 120% to 150%. He added that this was the “basics of DeFi 101.”

According to Sun, the TRON DAO Reserve was also planning to upgrade the algorithmic stablecoin to make it more competitive.

Launched in 2022 to compete with Terra’s now-depegged UST stablecoin, USDD currently has a total supply of $744,337,556 and ranks 82 in the crypto market cap.

With the Bitcoin withdrawal, USDD’s collateral ratio has dropped to 229%. Notably, USDD’s collateral value is $1,706,624,789, with 98.9% backed by TRX and $19 million USDT. In 2022, the stablecoin’s collateral reserve was at $2.2 billion.

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