USDD Removes 12,000 BTC from Collateral, Contradicting Governance Claims

USDD, the algorithmic stablecoin associated with Justin Sun and the TRON blockchain, has removed around 12,000 bitcoins from its collateral.

Justin Sun’s algorithmic stablecoin, USDD, has quietly removed around 12,000 bitcoins from its collateral — a move that directly contradicts the coin’s claims of being governed by a decentralized autonomous organization (DAO).

Originally modeled after the ill-fated Terra, USDD scaled back its ambitions following the Luna-UST failure. However, the coin’s stability mechanism appears to be nearly depleted.

The 12,000 BTC were previously listed on USDD’s transparency page as being part of the coin’s collateral. However, the address containing these assets, 1KVpuCfhftkzJ67ZUegaMuaYey7qni7pPj, has now been quietly removed from transparency disclosures.

This move effectively conceals the removal of a large portion of the coin’s collateral from the public record, rendering it impossible to independently verify the remaining assets.

Despite claiming to be governed by a DAO, USDD has only held a single vote in May 2023, which authorized USDD to use “burned” TRX in its stability mechanism. This vote suggests a lack of clear understanding or communication regarding governance processes and the concept of “burned” assets.

Furthermore, USDD has been storing a significant portion of its collateral at the troubled HTX exchange without consulting the DAO. Moreover, the stability mechanism for USDD appears to be nearly depleted, with only $19 million in USDT and no funds in other stablecoin reserves.

At the time of writing, USDD has a total supply of around $744 million, making it larger than stablecoins such as TrueUSD, Tether Gold, and Terra Classic.

The above is the detailed content of USDD Removes 12,000 BTC from Collateral, Contradicting Governance Claims. For more information, please follow other related articles on the PHP Chinese website!