Tether, the company behind the largest United States dollar-pegged stablecoin USDT, has announced significant changes in its operations by discontinuing the issuance of new USDT tokens on the Eos and Algorand blockchains. This decision was detailed in a blog post published on June 24, marking a pivotal shift in the company’s blockchain engagement strategy.
Details of the Transition
Starting June 24, Tether will no longer mint USDT on the Eos and Algorand platforms. Despite this cessation, the company has assured that it will continue to redeem USDT tokens on these blockchains as usual over the next 12 months. The possibility of further changes will be evaluated and potentially announced after this period.
Tether’s decision to halt minting on these blockchains aligns with its broader goal of maintaining balance and ensuring optimal resource allocation within the Tether ecosystem. The company emphasizes the importance of network security architecture in ensuring the safety, usability, and sustainability of its operations on any chosen blockchain. By concentrating efforts on more efficient and secure blockchains, Tether aims to enhance overall security and innovation within its ecosystem.
Assurances to the Community
Tether has committed to executing this transition smoothly, with minimal disruption to users. The company prioritizes maintaining a seamless user experience and has promised a hassle-free transition for all stakeholders involved.
Eos and Algorand currently account for a negligible fraction of the total USDT supply:
- Eos-based USDT: $75.5 million, approximately 0.06% of the total $113 billion circulating supply.
- Algorand-based USDT: $17 million, roughly 0.01% of the total circulating supply.
This minimal impact underscores Tether’s strategy of reallocating resources to more impactful areas of its network.
| Blockchain | USDT Circulation | Percentage of Total Supply |
|---|---|---|
| Eos | $75.5 million | 0.06% |
| Algorand | $17 million | 0.01% |
| TON | $500 million | 0.44% |
| Ethereum | Not specified | Significant |
The first Tether tokens were issued on the Bitcoin blockchain via the Omni Layer Protocol in October 2014. Since then, Tether has expanded its presence across multiple blockchains. Despite the recent cuts, Tether continues to explore new opportunities, as evidenced by its recent integration of USDT on the TON blockchain in April 2024, where it has already minted $500 million worth of stablecoins.
In addition to these changes, Tether has previously ceased USDT minting on other blockchains, including Kusama, Bitcoin Cash SLP, and the Omni Layer Protocol in August 2023. These strategic decisions are part of Tether’s ongoing efforts to adapt to the evolving digital currency landscape and optimize its blockchain engagements.
Tether’s strategic realignment, including the cessation of USDT minting on less significant blockchains like Eos and Algorand, is indicative of its commitment to enhancing efficiency and security in its operations. As the stablecoin giant continues to adapt and innovate, the impact of these changes will likely influence its market position and the broader digital currency ecosystem.
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