The official announcement of the complete sunset of USDJ, the first algorithmic stablecoin on the blockchain, was made by its creator Justin Sun. On November 18, Sun has confirmed that 100 percent of those who held USDJ until the snapshot will get back their money in a 1:1 ratio. He pointed out that the remaining USDJ 200,000 value that is still recirculating in the market is fully redeemable.
The year of redemption operations comes after over a year in the form of the sunset. The rest of the tokens are currently pegged to TRX at a permanent peg of 1 USDJ = 1.55 TRX.
In 2019, a highly inspired version of the early single-collateral SAI system of MakerDAO was launched as USDJ. Nevertheless, when technologies of stablecoins developed, USDJ did not keep up.Explaining the reasoning behind the USDJ decision, Sun said that the underlying code of the project was old, and too decentralized to upgrade without making fundamental functions compromise. As USDT took over the network of TRON and the newer USDD was exploding in popularity, the team chose to shut USJ down instead of running a redundant product. Sun made parallelisms with the similar shifting of SAI to multi-collateral DAI at MakerDAO, saying that the shutdown is natural, and normal, in the history of stablecoin infrastructure.
By November 17, 2025, USDJ ceases to be a stablecoin. This peg is simply an area to close the system, and not user redemption value. Sun disclosed that the code makes this TRX-binding mechanism necessary to make the contract stable closure. There is no additional stablecoin gameplay such as repurchase or minting after the closure.
Other critics would wonder when the last redemption would take place and why the last redemption would not take place at 1:1 price through exchanges. In his response, Sun wrote that the TRX peg does not affect actual redemption value. TRON has now shifted all its focus to USDD, an over-collateralized stablecoin that has started gaining popularity in the DeFi market. The sunset of USDJ signals the end of the era but also points to the development of the network to tools that are more robust.
