How JST (JUST) Works

JST (Just Network) is the governance token of the JUST ecosystem, built on the TRON blockchain. The JUST ecosystem aims to create a decentralized finance (DeFi) platform that enables users to issue and manage decentralized stablecoins and other digital assets. JST, while central to the ecosystem, plays a specialized role in governance and ensuring the usability of the platform.

Platform Overview

At its core, the JUST ecosystem revolves around decentralized lending, borrowing, and stablecoin issuance. The primary dApp in this ecosystem is JustStable, a decentralized stablecoin system where users can leverage their TRON-based assets to create a TRON-based stablecoin, USDJ, pegged to the US Dollar. Within this architecture, JST holders have the ability to govern and vote on key parameters of the protocol, such as interest rates and collateralization levels.

Issuance and Collateralization

Users looking to mint USDJ begin by depositing TRON-based assets as collateral into JustStable. These digital assets, primarily TRX, are locked in a smart contract and serve to back the newly created USDJ tokens. JustStable operates under an over-collateralized model, meaning that the value of the TRON-based collateral must exceed the amount of USDJ minted, providing a safety net for the entire ecosystem and reducing the risk of the stablecoin losing its peg.

JST’s Utility

In addition to its role in governance, JST is used to pay off interest payments and stabilize fees within JustStable. These fees apply when users want to unlock their collateral and retrieve their locked TRON-based tokens after minting USDJ. By using JST, users ensure the system functions smoothly minus the need for intermediaries, which is a hallmark of decentralized finance.

Governance

The most prominent role of JST is within the governance structure of the JUST ecosystem. Only JST holders can participate in decision-making processes regarding protocol upgrades, setting key risk parameters, and adjusting any function that ensures the health of the JUST ecosystem. This decentralized governance structure guarantees that decisions aren’t made by any single party but reflect the consensus of JST holders.

Incentives

JST tokens are also distributed as rewards to users through different DeFi activities, such as liquidity provision and staking. These incentives pool liquidity into the platform, contributing to its overall sustainability.