USDD

The Decentralized USD (USDD) is a stablecoin managed by the TRON DAO Reserve, which is in turn linked to the TRON blockchain. USDD was launched in April 2022. It is an algorithmic stablecoin, which means it is not backed by any real assets but relies on mathematical algorithms to maintain its stability. Behind these algorithms lies a mechanism called “seigniorage shares,” where seigniorage shares are created when new coins are minted and destroyed when old coins are burned. The supply of seigniorage shares is managed algorithmically so that it increases when the stablecoin’s price falls and decreases when it rises. The idea behind Seigniorage Shares is that by regulating the balance of supply and demand, the price of the stablecoin can be pegged to a single “stable” value without being backed by any collateral.