Ada losing relevance because of Djed?

From IOHK blog post:

“It [Djed] is designed to be used for paying transaction fees on the Cardano network. One benefit of this is to make transaction costs more predictable, so avoiding volatile and exorbitant gas fees for users.”

This seems like a huge blow on Ada’s relevance, since it’s much safer to pay fees in a stable coin. What will remain of value for Ada after this ?

Djed is not like Tether or USDC coins. Djed uses only one external output, which is the price of the peg. All other functions are done on a blockchain. So when you buy Djed you have to pay with ADA. That ADA is held by Djed DAO in a ratio of the peg plus fees for reserve. That means that Djed removes ADA from circulation and holds it in it’s reserves. If you sell Djed you get ADA back at the pegged ratio.

So if other markets adapt Djed from Cardano network then everyone buying Djed on any exchange or platform will be increasing demand for ADA. If Djed become as widely accepted as Tether this will make ADA one of the most relevant crypto in existence. Basically you would have to lock up ADA in Djed anytime you want to by a Bitcoin. That sound relevant to me.


*The stablecoin ecosystem has matured tremendously over the past few years. Blockchain participants are using stablecoins to engage in everyday transactions because they allow monetary value to be exchanged in a seamless manner, regardless of the sender and recipient’s location. I believe that adding the Djed stablecoin to the Cardano blockchain will significantly improve how transactions are settled on the platform.