USDJ retirement triggers fixed TRX conversion and ends TRON era

The usdj retirement closes a five-and-a-half-year chapter for TRON’s first algorithmic stablecoin, replacing its dollar peg with a fixed redemption model anchored to TRX.

Why does USDJ’s shutdown matter for TRON?

JUST DAO has officially retired USDJ, ending one of TRON’s earliest algorithmic stablecoin experiments and confirming that the token will no longer circulate in DeFi markets.

The project now runs under a new fixed-rate exchange framework directly linked to TRX. The redemption rate is set at 1 USDJ = 1.5532 TRX, which the team notes is roughly $0.45 at current market prices. This move gives remaining holders a clear exit path and formally concludes the stablecoin’s five-and-a-half-year lifespan.

Moreover, the transition signals a strategic pivot in TRON’s broader decentralized finance roadmap. The network is redirecting focus toward newer models and integrations that lean on USDD, USDT and other externally issued stable assets.

How did USDJ evolve before the shutdown?

USDJ launched in early 2020 as TRON’s first algorithmic, overcollateralized stablecoin, closely mirroring the design of MakerDAO’s DAI system. It briefly reached a $300 million market cap during the peak of the DeFi boom, becoming a key building block in TRON’s early on-chain lending and trading infrastructure.

However, liquidity thinned over time as the network’s attention shifted toward USDD and USDT integrations. Market depth declined, and the token’s role within TRON’s DeFi stack gradually diminished compared with newer, liquidity-backed instruments.

JUST DAO had already outlined a gradual wind-down earlier this year. Core capabilities such as minting and redemption via collateralized debt positions saw their CDP functions sunset on August 31, 2025, closing off the main mechanism that kept USDJ aligned with its intended value.

Liquidations on those positions were then extended to September 30, 2025, to give users additional time to manage leverage and unwind exposure. However, since that window closed, the token has operated without targeted liquidity support and has traded consistently below its original $1 peg.

What replaces the old stablecoin mechanism?

The latest JUST DAO announcement removes any remaining doubt about the stable asset’s future. The team confirmed that a fixed-rate model anchored to TRX has fully replaced the original stablecoin architecture.

This means USDJ is no longer engineered to track the U.S. dollar. Instead, holders can redeem tokens at the fixed redemption rate TRON set today, locking in the conversion ratio of 1 USDJ to 1.5532 TRX for the final phase of the transition.

JUST DAO emphasized that the decision aims to offer transparency and prevent confusion as the asset drifted away from its intended peg. Moreover, the fixed rate provides a clean technical and economic cutoff for long-time participants who continued holding the token after active features were phased out.

Why is TRON pivoting its DeFi strategy?

TRON has been reshaping its DeFi playbook for roughly two years, prioritizing USDD, USDT and other third-party stablecoin integrations instead of maintaining multiple legacy systems. The ecosystem today is broader, with more users and protocols than in early 2020, when USDJ was launched as a core primitive.

Thus, maintaining a separate, aging native stablecoin no longer aligns with the network’s long-term vision. Developers have also cited security and stability concerns around older CDP-based architectures, which can be more complex to manage in volatile markets.

The new framework allows TRON to decommission such legacy mechanisms while concentrating resources on tools tailored to a modern DeFi landscape. Furthermore, it aligns with the trend toward overcollateralized, reserve-backed designs exemplified by USDD and other stable assets overseen by the TRON DAO Reserve.

How is the community reacting to USDJ’s end?

Many long-time TRON participants view the token’s shutdown as the close of an important chapter. USDJ was one of the network’s earliest major DeFi projects and, for a time, a central liquidity source across lending, trading and yield platforms.

Its conclusion is seen as a symbolic step toward more mature, liquidity-backed financial tools. Community reactions have been mixed, though. Some users welcome the clarity brought by the transparent usdj to trx rate, particularly given the token’s prolonged deviation from its peg.

Others express nostalgia for an asset that helped catalyze TRON’s early DeFi experiments and on-chain growth. However, the consensus trend points toward acceptance that the ecosystem has outgrown its initial stablecoin design.

JUST DAO publicly thanked the community for supporting USDJ since launch and promised to deliver more innovative products. As TRON continues expanding its footprint in decentralized finance, the tron stablecoin shutdown clears space for new protocols and more scalable models, aligned with evolving TRON infrastructure.

In summary, the retirement of USDJ, its fixed 1.5532 TRX redemption rate and the closure of CDP mechanisms formally end an era for TRON, while underscoring the network’s pivot toward larger, more resilient stablecoin structures.