On March 5, 2018, Tron and Tether announced that Tether will issue a stable USDT, the TRC-20 version of the USDT, on the Tron.
Recently, the number of accounts in Tron exceeded 2 million, and the 3.5 version upgrade was completed, the average daily transaction volume of Dapp exceeded EOS. According to the tron.app data, the number of Tron Dapp reached 187, the smart contract reached 464 and there are 10 decentralized exchanges. On the other hand, USDT experienced a crisis in October 2018, and the price has stabilized. At the end of 2018, Bloomberg issued a statement that Tether has sufficient US dollar reserves. However this incident has become an opportunity for other stable coins to enter the market, gradually eroding the market share of USDT. Although USDT still maintains a market share of nearly 70%, it continues to shrink.
Mars Finance believes that the combination of Tron and USDT is win win. The native USDT on Tron can activate DEX, Dapp and Tron ecology to a large extent, although it weakens the role of TRX to some extent, but USDT It is more acceptable and more likely to bring traffic. Tether can use the fast-developing Dapp ecosystem of Tron to increase the direct participation of USDT in the dApp ecosystem, increase liquidity, and help USDT compete for market share.
In addition, Justin Sun revealed that in the future, more than 100 million RMB will be used to reward the USDT users in Tron. At present, VenaPi community has translated this interview of Justin Sun to English. Which is shown below:
For the cooperation between Tron and Tether, and the influence on USDT-TRON on Tron, DEX, Dapp ecology, etc., Mars Finance exclusive interview with Tron CEO Justin Sun:
The Tron and Tether cooperation are win win
Mars Finance: How is the cooperation between the Tron and Tether achieved? Can you introduce the ins and outs of this cooperation?
Justin Sun: We have always maintained good communication and contact with Tether. In March, we further hope to promote the relationship between the two sides. Tron community needs to stabilize the currency ecology, Tether also needs a more stable, reliable, technically more advanced public chain, I think this is a win-win situation.
Mars Finance: Why did not the Tron choose to cooperate with GUSD, PAX and other stable coins? Choosing to work with Tether means that the volume of stable coin is more important than compliance?
Justin Sun: The first thing we choose to consider for cooperation is market position. Tether is currently in the leading position in the stable coin market. At the same time, I think Tether has also made a lot of efforts in compliance, and more stable coins in the future on Tron. We are also open to the cooperation.
Mars Finance: Since last year, USDT’s competitors have gradually grown. For example, the market share of USDC and TUSD has expanded significantly. After the combination of USDT and the Tron, what impact do you expect to have on the market and the stability of competition between the coins?
Justin Sun: At present, we have not changed the judgment that USDT has occupied the mainstream of the market for a long time. We hope to cooperate with Tether to promote the development of the stable coin market. Moreover, we believe that because the industry itself is in a period of rapid growth, even if the stable coins are mutually competitive, the cooperation is greater than Competition, the future Tron also welcomes more stable coins to Tron, we are highly compatible with the existing Ethereum smart contract, just transfer and redeploy.
Mars Finance: What do you think about the opinions that Tether and Bitfinex used to manipulate the price to push the BTC up? Have you considered the negative impact of Tether before?
Justin Sun: This has been proved to be untrue. I think Tether’s transparency is still very good. In the future, all USDT holders can freely query the distribution of USDT on the Tron public chain. Whether it is additional issuance, how much is issued, and where it is sent, it is also clear at a glance. I think it is very important to issue and hold transparent currency.
Tron public chain transfer is completely free
Mars Finance: We know that the Tron has its own currency standard TRC-10 and TRC-20, but many people do not understand the difference between TRC-10 and TRC-20, and the relationship with the publicly known ERC-20, What is the purpose of TRC-20 compatible with ERC-20?
Justin Sun: TRC-10 is the native Token in the Tron. The difference between 10 and 20 is that 10 has no smart contract, 20 is a smart contract, 10 is more closely integrated with the protocol itself, and the transfer fee is lower. TRC20 is a smart contract, everything can be programmed to suit your needs, but at a higher cost. TRC10 Token, which is suitable for payment and transmission purposes, 20 is suitable for application-oriented, programmable Dapp. At the same time, TRC-20 is also fully compatible with ERC20. Developers can easily and completely re-port the ERC20 contract to TRC20, and the migration cost is completely zero. It is our responsibility to provide Ethereum developers with a good experience of moving to the Tron.
USDT of the TRC-20 be distributed
Mars Finance: How does the USDT of the TRC-20 be distributed and transferred from the existing Omni network to the Tron? How many USDTs (% of current liquidity) are allocated by Tether to the Tron network? What do users need to do if they want to use the new version of USDT on Tron?
Justin Sun: At present, our cooperation with Tether only accepts exchange-level migration and does not accept ordinary users. Ordinary users directly choose to support the USDT-TRON exchange to complete the migration, and we will launch a series of shocking activities in the future, looking forward to it! If the exchange and wallet want to support USDT-TRON, you can contact us directly. We will send the best engineers to provide a 7*24-hour service, which is the same as the migration experience of ERC20-TRX to the main network TRX at that time.
We believe that most of the major exchanges on the market will support USDT-TRON. In the future, the main circulation of USDT will also be the wave field TRON, let us wait and see.
Mars Finance: Does the USDT of TRC-20 have technical advantages and challenges? How does the Tron respond to the challenge?
Justin Sun: At present, USDT-TRON’s technology is very mature and has reached the level of security and convenience at the financial enterprise level and can be used at any time.
At present, the stable coin Omni public chain circulating in the market, the first is the transfer fee is extremely high, the peak transfer requires a payment of RMB 100, and sometimes the transaction failure will be delayed due to the fee problem, the transfer in Tron is completely free, greatly reducing the burden on the transferor and the risk of rollback. Second, Omni’s transfer is very slow. Now it takes more than fifteen minutes for a transfer to be received, and the transfer in Tron takes only a second. The speed is greatly improved. Third, the Omni chain can only be used for transfer, can not be programmed, similar to the current stable coin running on the calculator, and the Tron public chain is an operating system with smart contracts, the difference between the two is similar to the IOS system and calculator The difference, the scalability and programmability of the stable currency have been greatly enhanced.