TRON founder Justin Sun has put forward a bold proposal to major centralized exchanges (CEXs), offering a lucrative 20% annualized reward incentive for integrating USDD, TRON’s algorithmic stablecoin.
Announced via a post on the X platform earlier today, Sun’s initiative encourages exchanges to support USDD, emphasizing that the stablecoin can be exchanged for USDT at a 1:1 lossless ratio.
The proposal aims to bridge the gap between USDD’s strong on-chain presence and its lack of centralized exchange listings.
By introducing this incentive, Sun is looking to rapidly expand USDD’s reach in the broader cryptocurrency market and enhance its adoption among traders and institutional investors.
USDD’s Organic Growth and On-Chain Demand
Despite not being listed on centralized exchanges, USDD has demonstrated impressive growth, surpassing 100 million tokens in circulation within just three days of its launch.
The rapid expansion is notable because it has been entirely driven by on-chain demand rather than exchange-backed liquidity.
Sun highlighted this achievement as a testament to the stablecoin’s stability and utility within the decentralized finance (DeFi) space.
With the new reward initiative, he aims to capitalize on this momentum by attracting centralized exchange partnerships, ultimately making USDD a more accessible and widely adopted stablecoin.
Incentive Strategy and Potential Market Impact
The 20% annualized reward structure is designed to entice exchanges by offering a high-yield incentive with minimal risk, thanks to the 1:1 conversion ratio with USDT.
If widely adopted, this initiative could significantly boost USDD’s liquidity, making it a strong competitor to established stablecoins like USDT and USDC.
TRON’s broader vision of expanding its DeFi and stablecoin ecosystem aligns with this move, as increased exchange adoption would further solidify TRON’s presence in the crypto market.
However, the sustainability of such high-yield incentives remains uncertain, given past instances where similar models faced challenges in maintaining long-term stability.
Justin Sun’s Expanding Influence in the Crypto Market
Sun’s latest push for USDD adoption is just one of several significant moves he has made in the cryptocurrency industry.
Recently, he credited former U.S. President Donald Trump’s pro-crypto stance for the success of projects like $TRUMP and $TRX, with Trump Coin surging 20.92% to $43.17 and TRON (TRX) gaining 4.37% in value.
Additionally, TRON DAO has invested $15 million in WLFI tokens, bringing its total commitment to $75 million as Sun pledges another $45 million.
However, not all of Sun’s recent activities have been without controversy—he has also accused the Chain (XCN) project of market manipulation, warning exchanges of potential risks.
As Sun continues to make strategic moves, the response of major exchanges to his USDD proposal will determine whether TRON’s stablecoin ambitions gain the widespread traction he envisions.
Also Read: Justin Sun Claims ETH Price Could Hit $10K Under His Leadership, Indepth Plans & Strategies Revealed