Waves Founder Says New USDN Could Be More Than $1

Key Points:

• Sasha Ivanov, the founder of the public chain project Waves, released a statement to clarify the future of USDN.
• The Waves founder says the stablecoin has failed as a stable currency, but it’s not “dead.”
• In addition, Ivanov said that Waves tokens need to be withdrawn from the centralized exchange and that the Power token airdrop will only be done on the Waves chain.

The Waves ecosystem stablecoin USDN and its direction in the future were revealed by Sasha Ivanov, the founder of the public chain project Waves, in a recent message, asserting that it is not “dead.”

Ivanov issued a statement in the Telegram group:

“There’s some misunderstanding regarding the future of USDN, which I’d like to clear up. First off, did it fail as a stablecoin? Yes, it did. Is it dead? Hell no. Its architecture has proven to be a failure for a hard-pegged stablecoin. But it will be adequate for another interesting financial product, namely the ecosystem index. It does not require a hard peg, it just has to track a portfolio of select ecosystem tokens. We phase it out as a stablecoin, but we resurrect it as a new asset with new meaning and utility. I agree that it is quite unconventional, but drastic times require drastic measures.

We are doing it in such a way that we’ll be able to keep NSBT and SURF tokens with their incentives, and also we will incentivize token holders to add their tokens to the Index. The updated protocol will be simple but, despite (or thanks to) that, very efficient. Bear in mind that since it is not stable any more, its price can be not only under $1 but also above it. We are preparing new treasury assets to be added, first, it will be a donation, after that, the incentives to add new tokens to the treasury will kick in, and the project will live in a fully decentralized way. If you believe in Waves, believe in USDN. The core team is working really hard to execute the plan and breathe new air into USDN. Nothing is forgotten, and we never give up.”

In addition, Ivanov said on Twitter that in order to get the Power token airdrop, Waves tokens need to be withdrawn from the centralized exchange, and the Power token airdrop will only be carried out on the Waves chain.

As Coincu reported, USDN will be transformed into the Waves ecosystem index token WIXT. The token will not be obliged to peg to $1, but it will represent the value of the Waves ecosystem token instead of aiming to reach $1.

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Harold

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