As a major ecological component of the blockchain industry, the stablecoin has always played the role of linking French currency and digital currency in the blockchain industry. But because of the nature of its decentralization, as the power of the stablecoin issuing agency gradually increased, the stablecoin issuing agency began to take its own interests as the standard, arbitrarily issued stablecoin, thus manipulating the market profit, so that the market once panic. This year’s high-profile entry into the stablecoin market USDN, will there be such unlimited issuance of the situation? The answer is no!
Unlike the pledge issuance of other stablecoin issuers, the USDN adopts a decentralized issuance approach and establishes a regulatory mechanism to calculate and adjust the USDN token supply based on changes in the USDN exchange rate against the dollar.
When the real price of USDN in the market is less than $1, the network automatically destroys certain USDN, and issues certain USDN bond vouchers for each holder. When the USDN’s actual transaction price is higher than $1, the blockchain network automatically issues new USDN, to meet market demand. Each user holding USDN bonds will receive a portion of the USDN. When all the bonds in the market have been converted and still need to be issued, the system will be in accordance with the smart contract will need to issue all the USDN currency circulation to the holder of the USDN equity index, will be allocated according to the held proportion of USDN equity index.
In the face of supply and demand in the market, the dynamic balance is achieved by USDN in a decentralized approach, which ensures that the price of USDN tokens can be constant at the anchored dollar price. Excellent self-stability makes every holder of USDN become a market maker, the interests of USDN holders in the network are consistent, no longer need third-party supervision and other ways to obtain the credit costs of holders and institutions. A decentralized USDN will not be issued or destroyed forever, it will serve only the needs of the market.
USDN, such a truly stablecoin, cannot only ensure that the safe-haven needs of empty holders are met when trading with other digital currencies, but also have extremely high transaction speed and performance based on the USDN issued by NGK.IO, and can also meet the daily transaction needs of users. The stablecoin USDN, is bound to stand out in the future!
