What To Know:
- TRON’s USDJ stablecoin was formally decommissioned and replaced with a fixed exchange rate.
- Justin Sun stated that 95% of USDJ was repurchased, and the remaining supply will be redeemed 1:1 to protect eligible users.
- The shutdown was due to USDJ’s outdated code, freeing up resources for USDD development.
Tron founder, Justin Sun pushed back as USDJ winds down and markets react. JUST DAO has formally decommissioned its TRON based stablecoin USDJ and replaced it with a fixed exchange rate model linked to TRX. The change, announced on November 18, came in after a months-long wind down that began in May 2025 and signaled a clear shift in the project’s priorities.
Justin Sun On Tron Stablecoin USDJ Shutdown
Justin Sun, linked with the project, has responded to the USDJ controversy. He said over 95 percent of USDJ supply has already been repurchased at a premium. He said roughly two hundred thousand dollars of USDJ remains in circulation. That portion will be redeemed permanently at a one to one rate to safeguard user assets. Sun added that withdrawals for users prior to a recorded snapshot will be honoured at one to one.
Sun explained the technical rationale. USDJ code is dated and comparable to early iterations of other stablecoins. The team concluded that technological upgrades in centralized stablecoin infrastructure left the project behind. Resources will be redirected to USDD development. The priority during the wind down has been to prevent user losses, Sun said, and the withdrawal mechanism reflects that commitment.
关于USDJ清退，首先，快照前的用户100% 1比1刚性兑付！USDJ是个老项目，官方已经清退了长达一年，以远高于1的价格回收了95%以上的USDJ，最后在市场只有20万美元的USDJ，最后这部分，也是永久兑换1比1，用户不用担心！最后清退是按照SAI的模式来进行的，必须绑定一个TRX比值，与实际用户清退价值无关！
— H.E. Justin Sun 👨🚀 🌞 (@justinsuntron) November 18, 2025
The final system state will bind USDJ to TRX. After shutdown USDJ will act as a decentralized TRX redemption contract. Its value will float with TRX and will be quoted at the fixed ratio of one point five five three two TRX per USDJ. Sun emphasised that the quoted shutdown ratio does not change the guaranteed redemption rate for eligible users prior to the snapshot.
Questions arose over the choice to close in TRX rather than provide a cash stablecoin swap. A user asked why the exit was not executed as a direct one to one exchange into widely used dollars stablecoins. Sun answered that system architecture constrained the closure. USDJ is native to TRON and the shutdown mechanism can only link to TRX. He reiterated that the arrangement has no impact on a prior user’s redemption rights.
On TRON the removal of USDJ will alter lending and liquidity dynamics. The community and market will now watch whether USDD can absorb demand and support the network’s DeFi plumbing. For now the priority is orderly redemption and limiting losses as the protocol moves into its final chapter. Market participants await further developments.
Under the new arrangement one USDJ equals 1.5532 TRX. The team said the move will streamline operations and free resources for newer projects such as USDD. The transition did not pass quietly. On November 17 USDJ spiked 187.82 percent in a single day. That was the largest daily move among major tokens as Bitcoin recorded a small decline from recent highs.
USDJ was originally a decentralized stablecoin built on over collateralized TRX deposits using Collateralized Debt Positions and a Target Rate Feedback Mechanism to manage supply. Declining user activity and competition from alternatives eroded the protocol’s usefulness. JUST DAO began phasing out USDJ in May by halting new CDP creation and removing it from exchanges including KuCoin. By September 30, the token adopted a floating rate and liquidity thinned, setting the stage for formal retirement.
The spike in USDJ reflected uncertainty more than renewed confidence. Traders bought a scarce token ahead of the shutdown, and price dynamics became disconnected from user redemption terms. At the same time the broader market struggled. Bitcoin fell to an intraday low near 90,250 dollars before settling around 90,046 dollars. Ethereum slipped below 3,000 dollars and traded near 2,983 dollars. Global crypto market capitalisation dropped to about 3.21 trillion dollars amid uneven performance.
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