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Sun Wants USDD to be the First PoW Stablecoin
Just as the Ethereum community is about to convert to a different proof-of-stake model following a protracted conflict, Justin Sun, the creator of Tron, revealed that he thinks Ethereum’s proof-of-work model is a crucial component of the platform. Several trillion dollars are at stake.
The cryptocurrency entrepreneur continues to promote Ethereum’s Merge, the much awaited event that, if everything goes as planned, would see Ethereum reborn as a speedier and less expensive blockchain. But if the hard work pays off, Sun has subsequently pledged to back EthereumPOW, so that may be the case.
According to Sun, he wants USDD, an algorithmic stablecoin he invented, to be the first stablecoin in the EthereumPOW ecosystem. He previously announced that his exchange, Poloniex, will be the first to offer EthereumPOW’s native currency. Sun noted that no other stablecoin issuers, at least to his knowledge, had publicly backed EthereumPOW, the blockchain he said will be left behind after the Merge. In an interview, he declared that they all want to be the first solution when everyone utilizes Ethereum proof-of-work post-Merge.
Decentralized Stablecoins are Crucial to This Sector
As we all know, all the components of decentralized finance are currently decentralized, with the exception of stablecoins, according to Sun. He thinks decentralized stablecoins, like Tron stablecoin USDD, a decentralized U.S. dollar, is still crucial to this sector. Even when the great majority of Ethereum apps and developers switch to PoS, Sun believes that a PoW version of Ethereum might still be a competitive blockchain.
In fact, he claimed that Proof-of-work offers a very strong foundation for Ethereum infrastructure. Not only is it tested and true, he added, but having a different proof-of-work-based blockchain that is conducive to smart contracts is definitely vital for the whole crypto business.
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He pointed out that the proof-of-stake market is congested with networks like Solana, Avalanche, and the network he established, Tron. However, most PoW networks, including those like Monero and Bitcoin, are not helpful for developing apps or sustaining complex economies like decentralized banking (DeFi). Sun’s backing for the Merge avoids concerns that the split ETHW chain may have the same issues that beset Ethereum, such as high gas prices and sluggish transaction speeds, which developers claim will be fixed once the Merge takes place.
A developer won’t be producing more ETHW than other people since ETHW won’t be pre-mined, he added. As a result, all airdrop receivers will receive equal quantities of the coin after the fork.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
