Dear community,.
12 May 2023, 10:28
Dear community,
Thank you for providing valuable feedback regarding the recent USDD proposal to utilize TRX from USDD’s TRX Burning Contract. We highly appreciate your active participation and engagement in shaping the future of USDD. We understand that you may have some concerns, and we would like to take this opportunity to address them in order to ensure transparency and clarity.
1.
The TRX Burning Contract: The TRX Burning Contract, also known as the MultiSigTRXBurn contract, was deployed prior to the collapse of Terra UST. In response to community concerns following the Terra Death Spiral, USDD promptly shifted from an algorithmic approach to an overcollateralization model. This transition aligns with the community’s familiarity with USDD since its early inception.
2.
Naming of the Contract: Although the contract’s name includes “burn,” it no longer functions as a contract that sends TRX to a blackhole address. Instead, the current MultiSigTRXBurn contract operates as a locked TRX collateral contract. Its mechanism closely resembles the MakerDAO system, ensuring the backing of USDD with overcollateralization of crypto assets. It is important to note that the contract’s name, “MultiSigTRXBurn,” cannot be changed or undone as it has already been deployed on the blockchain.
3.
Utilization of TRX: Contrary to common assumptions, the TRX sent to the MultiSigTRXBurn contract was not permanently lost in a blackhole address. Therefore, it can be utilized for other purposes. The proposal suggests utilizing the TRX to deposit into sTRX, thereby enhancing the liquidity of sTRX. Additionally, it can be used for TRON governance through stake 2.0 mechanisms. This approach is similar to how MakerDAO utilizes its collateral for other purposes, such as investing in US Government Bonds.
4.
Restricted Utilization of TRX: Importantly, any TRX utilized from the contract will be exclusively used for the purposes outlined in the proposal and will not be circulated back into the open market.
5.
Earnings and Sustainability: If the proposal passed, the earnings generated from these initiatives will have multiple uses. They can be used to subsidize mining activities, replenish the USDD reserve, and support the implementation of innovative strategies and initiatives. These measures are essential to ensure the long-term sustainability of USDD.
6.
MultiSigTRXBurn Contract Updates: The MultiSigTRXBurn contract will remain a multisignature contract, requiring multiple parties to mutually agree on utilizing the TRX held within the contract. No single party can withdraw and use the TRX independently.
7.
Proposal and Voting: The USDD proposal is not an enforceable plan imposed by the USDD team. It originated from the USDD community and is currently published as an open proposal open to voting by the community. The TRON DAO Reserve (TDR) and the USDD entity will respect the outcome of the open vote and act accordingly.
Same news in other sources
112 May 2023, 10:35
USDD (Twitter)
Dear community, thank you for providing valuable feedback regarding the recent #USDD proposal to utilize #TRX from USDD’s TRX Burning Contract. We highly appreciate your active participation and engagement in shaping the future of USDD.
USDD (Twitter).
USDD (Twitter)
Dear community, thank you for providing valuable feedback regarding the recent #USDD proposal to utilize #TRX from USDD’s TRX Burning Contract. We highly appreciate your active participation and engagement in shaping the future of USDD.