By
Chimamanda U. Martha
April 24th, 2024
The Protection Programme is curated to secure customers from the latest concerns associated with USN by making sure that legitimate USN holders can redeem their USN on a one-on-one basis with USDT.
Near Foundation, which has a blockchain of the same name, has decided to support and secure USN users with a $40 million project. The organization has suggested USN stablecoin wind down with its “USN Protection Programme”.
USN, which is a near-native stablecoin, was designed and introduced by Decentral Bank (DCB) in April. The Near foundation asserted that the USN is an independent community-run undertaking, assuring the public that there was no immediate involvement of the Near Foundation in its finances.
In the official announcement, it was stated that the DCB reached out to Near Foundation about the USN being under-collateralized, a situation typical of programmed stablecoins, particularly in severe market scenarios. DCB eventually acknowledged that there was also the possibility of double-minting of USN, which led to under-collateralization.
The Near Foundation is suggesting that the USN wind down. The Foundation propels DCB to carry this out at the earliest instance reliably and proficiently to secure most of its users. To safeguard the interests of its customers and allow the winding down of USN by the DCB, the Near Foundation has chosen to keep aside $40 Million. This will be provided through a grant for the design and implementation of the “USN Protection Programme.”
The Protection Programme is curated to secure customers from the latest concerns associated with USN by making sure that legitimate USN holders can redeem their USN on a one-on-one basis with USDT. The collateral margin is completely taken care of by the USN Protection Programme. It is already decided and not associated with the $Near Token price in any way.
Redemption will commence once DCB completes all the steps to secure a methodical wind-down. This program will be accessible for a year (until 24th October 2023). Eligible USN holders can decide to redeem their USN through any applicable path.
The Near is convinced that once the environment matures and becomes more favorable, this kind of foreign aid would not be needed in the future. Eventually, the Near Foundation wishes to thrive with the Near Digital Collective (NDC) and create a more welcoming community that initiates funded projects with the remit of establishing strong community standards and bars, specifically in association with stablecoins. This will allow the protection of customers in dire circumstances that call for immediate innovation with ever-changing markets and regulations.
According to Near Foundation Chief Executive Officer Marieke Flament, the regulatory terrain where the crypto space thrives has a worrisome reputation. The community needs to instill values that ensure transparency and protection of users.