USD1 stablecoin launches on TRON amid major governance update

TRON has kicked off the minting of World Liberty Financial’s USD1 stablecoin on its blockchain, coinciding with a major governance update.

TRON (TRX) DAO has just announced the first minting of World Liberty Financial’s USD1 stablecoin on its blockchain. The move follows an announcement made on the Token2049 stage on May 1, where TRON founder Justin Sun revealed the network’s collaboration with the Trump-backed crypto to integrate USD1 into the TRON ecosystem.

The minting began early on June 11, marked by an X post from TRON founder Justin Sun, who called it a “giant leap for stablecoins.”

Backed by short-term U.S. government treasuries, dollar deposits, and other cash equivalents, WLFI 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).

The minting of USD1 coincides with a major development within the TRON ecosystem. Today, TRON finalized Proposal No. 102, which cuts block rewards by 50% and voting rewards by 20%. The proposal passed overwhelmingly, 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.

As of June 13, TRX is trading near $0.27, steadily following an ascending channel that has been driving its price momentum since mid-March.