USDD Removes 12,000 BTC of Collateral Without TRON DAO Reserve Approval

USDD, the algorithmic stablecoin on Tron supposedly governed by the TRON DAO Reserve, has removed approximately 12,000 bitcoins from its collateral, despite the DAO not approving the change.

The algorithmic stablecoin on Tron, USDD, has seen its reserves decrease by 12,000 BTC without the approval of the TRON DAO Reserve, according to several community members.

The coin, which was originally planned to be a Terra rip-off promoted by Justin Sun, had its ambitions to be integrated into the core of TRON abandoned following the ignominious failure of Terra-Luna.

The USDD transparency page previously included around 12,000 BTC in 1KVpuCfhftkzJ67ZUegaMuaYey7qni7pPj; however, that address is no longer included.

This address had been touted by USDD as holding a significant portion of its BTC collateral, but now the only address listed belongs to HTX, which stores over 90% of the remaining USDD reserves.

Theっそstablecoin’s total supply now stands at $744 million, making it larger than TrueUSD, Tether Gold, and the inspiration for the system, Terra Classic.

Despite Sun and USDD’s frequent claims that it is governed by a decentralized autonomous organization (DAO), there are no governance votes that seem to correspond to this change.

There has actually only been one vote in the entire history of the DAO, back in May 2023, when a vote was held to allow USDD to use ‘burned’ TRX for the stablecoin. This suggests that neither Sun or USDD understand what ‘burned’ means.

USDD has had other issues surrounding its collateral, including storing a significant quantity at HTX, despite not consulting with the so-called DAO.

Read more: How involved is Justin Sun with WBTC’s new custodian BiT Global?

The ‘Peg Stability Module’ for the token, which enables users to easily swap it for other stablecoins, is also nearly drained, holding $19 million USDT, 0 USDC, 0 TUSD, and 0 UDSJ.

Protos has reached out to USDD for comment on these issues but has not received a response at time of publication.

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