"Decentralized Dollar" usually refers to a type of stablecoin pegged to the US dollar, with the goals of:

* Censorship-resistance (it is difficult for any single entity to freeze funds)

* Transparency (on-chain collateral and rules are visible)

* Managed by code and/or decentralized governance mechanisms, rather than by a single issuing party

* Redeemable or stable through mechanisms that do not rely on a single company’s bank account

In practice, the degree of decentralization is a continuous spectrum: @USDD - Decentralized USD