TRON Mints USD1 Stablecoin Amid Major Governance Update

TRON has initiated the minting of World Liberty Financial’s USD1 stablecoin on its blockchain, aligning with a significant governance update. The TRON (TRX) DAO recently announced the first minting of USD1, following an announcement made by TRON founder Justin Sun at the Token2049 stage on May 1. This announcement revealed the network’s collaboration with the Trump-backed crypto to integrate USD1 into the TRON ecosystem.

The minting process began early on June 11, as indicated by an X post from Justin Sun, who described it as a “giant leap for stablecoins.” USD1 is backed by short-term U.S. government treasuries, dollar deposits, and other cash equivalents. World Liberty Financial unveiled USD1 at Token2049 in Dubai last month, positioning it as a key component in settling MGX’s $2 billion investment in Binance. With the latest integration on TRON, USD1 is now available across three networks: TRON, Binance Smart Chain (BNB), and Ethereum (ETH).

This development coincides with a major update within the TRON ecosystem. TRON finalized Proposal No. 102, which reduces block rewards by 50% and voting rewards by 20%. The proposal passed with 25 out of 27 votes in favor. As a result, block rewards will decrease from 16 TRX to 8 TRX, and voting rewards will drop from 160 TRX to 128 TRX. This aims to increase TRX’s annual deflation rate from 0.85% to 1.29%, which could potentially put upward pressure on TRX’s price over time by reducing the token supply.