Is USDN token illegal? What is the USDN token mechanism? Is USDN token universal?
USDN is a stable coin issued based on the NGK public chain. One USDN is anchored to the value of 1 U.S. dollar. USDN is issued using blockchain smart contracts. Through the transparency of smart contracts, USDN holders in the market can obtain algorithmic stable endorsements. USDN is equal to the strongest trust system in the digital market. It is a token that anchors the world and a universal digital token that connects the global digital economy.
USDN abandoned the traditional mortgage method and used blockchain smart contracts to achieve algorithmic stability, allowing market participants to obtain algorithmic stable endorsement. At the same time, in order to make the project investment more legal and standardized, NGK adopts the STO token economic model. It can be seen that USDN is stable in the issuance of regular projects, and at the same time it has the credit endorsement of STO, which is completely legal.
USDN is a stable currency issued based on the NGK network. The NGK team aims to implement the decentralized characteristics of the blockchain with three major mechanisms to ensure that the price of USDN is not affected by the market and fluctuates.
USDN currency: stable digital currency. At this point, USDN is not much different from other stablecoins, but with the support of the NGK network’s extensive ecological partners, USDN has more application scenarios than other stablecoin projects, including those based on the NGK network. Used in Dapp or in the future to purchase physical products in NGK digital mall, etc.
USDN bond certificate: A certificate used to issue additional stable coins and destroy stable coins. The USDN bond certificate is the first step to ensure that the USDN price remains unchanged. When the USDN price is higher than 1 U.S. dollar, the system will issue USDN to bond holders to increase the supply of stable currency and make the price drop to around 1 U.S. dollar, and vice versa.
USDN Equity Index: It is only used to issue additional stablecoins and to reward equity index holders. The USDN equity index is the second line of defense for USDN to meet the market’s need for additional issuance. When USDN bond certificates have been redeemed for all bond certificates in the market, but additional issuance is still needed, the system will follow the originally set smart contract and use it to adjust the market. The USDN tokens in the supply and demand relationship of USDN tokens are all distributed to the owners of the USDN equity index. In terms of the distribution method, it will be distributed according to the proportion of the equity index held by users or institutions.
As an application token, USDN has application performance, payment performance, and algorithm performance. It can be used to solve payment and settlement problems in more scenarios. Its liquidity will be no less than any stable currency in the market. At the same time, it has passed NGK.IO The underlying technical architecture of the chain gives USDN a faster transaction speed, which means that it can be applied to various scenarios and quickly generate circulation.
