In early March, Tron had announced its collaboration with stablecoin Tether to issue a TRC20-based USDT. The aim of the partnership was to enhance the Tron blockchain ecosystem and according to the Tron Foundation, it has succeeded. They report that it has also brought more liquidity to decentralised exchanges and has created more convenient access to the blockchain.
The original USDT is based on Ethereum. Tron, like Ethereum and EOS, provides smart contract-based blockchain solutions for decentralised applications. It thus aims to provide direct competition to the two platforms. This partnership with USDT is one way it is trying to overcome Ethereum to become the most popular blockchain platform. To incentivise users to switch from ERC-20 USDT to TRC-20 USDT, Tron also launched an incentive scheme. The scheme was a “200 RMB Incentive Plan 2.0” and lasted from July 16, 2019, to yesterday, August 15th.
TRC-20 USDT holders had the opportunity to receive daily rewards through airdrop. According to Tron, the rewards scheme was successful due to characteristics such as, “long duration, high rewards, free of cost, large total volume, and fast delivery.” It also reports that it gave out a total of approximately 776,931 USDT to a total of 51357 accounts, which it estimates was worth $779,369 USD.
The #TRC20 based #USDT Incentive Plan is successfully accomplished. TRON has completed all 31 airdrops for early users, giving out totally $779369.47681 USD according to @bitfinex's USDT price. There are a total of 51357 accounts received the reward.https://t.co/qNjxVp3bGc
— TRON Foundation (@Tronfoundation) August 16, 2019
Elaborating further on the partnership, Tron explained that users can issue, hold and transfer USDT with transparency through the Tron smart contracts. They also claim that transfers will be completed in seconds, and can be scaled through smart contracts.
Stablecoins are fiat-backed cryptocurrencies that are designed as such in order to be subject to less price volatility. Tether was founded to be a utility token that represents fiat currency and can facilitate cross-border payments through blockchains. It is linked to the US Dollar at a 1:1 ratio. Every Tether token that is ‘minted’ has to be backed by a US Dollar.