Tether stops minting USDT on EOS and Algorand gives 1 year for redemptions News ▸ Algorand · EOS · Tether ▸ Stablecoins
Tether stops minting USDT on EOS and Algorand gives 1 year for redemptions
Tether's strategic shift emphasizes resource allocation to platforms with higher community interest.
2 min read
Updated: Jun. 24, 2024 at 2:32 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Tether, the issuer of USD₮ tokens, is shifting its focus towards “enhancing community-driven blockchain support.” As part of this strategic transition, Tether will cease support for the EOS and Algorand implementations.
In line with its commitment to maintaining a robust and innovative blockchain ecosystem, Tether stated that it consistently evaluates current transport layers to balance maintainability, usage, and community interest. This strategic move highlights the importance of community interest in determining the deployment of USD₮ on specific blockchains.
Security architecture and usability are reportedly critical factors in Tether’s evaluation process for blockchain networks. By prioritizing these aspects, Tether aims to allocate resources effectively to bolster security and efficiency while supporting innovation in the crypto landscape.
Effective immediately, Tether will no longer mint USD₮ on EOS and Algorand, with the redemption of USD₮ on these platforms continuing for the next 12 months. This period aims for a minimally disruptive transition.
According to on-chain data, there is only $17 million USDT across 39,000 holders on Algorand with a reserve allocation of $18 trillion. On EOS, there are $85 million USDT tokens across 32,000 holders. Compared to other chains, these values are extremely low for the $112 billion market cap token.
Per Tether’s announcement, the company encourages the community to expand the use cases of USD₮ on supported protocols and chains. This approach aims to leverage community input to drive the future direction of Tether’s blockchain integrations, suggesting that smaller chains potentially look to bridge tokens from other chains rather than Tether directly minting with low volumes. The strategic decision to discontinue support for EOS and Algorand reflects a broader goal of focusing resources on platforms that align with community interest and provide sustainable benefits.
Tether assures its users that the transition will be managed with care to minimize disruptions, reaffirming its mission to contribute to a sustainable and democratized financial system. The company’s emphasis on community-driven decisions and resource optimization illustrates its ongoing efforts to adapt to the evolving needs of the blockchain ecosystem.
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Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Tether Limited
Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.