Tether Halts USDT Minting on EOS and Algorand, Offers Redemption for a Year

By: Eva Baxter

Tether, the issuer behind the USDT stablecoin, has announced a strategic shift that will see it cease the minting of new USDT tokens on the EOS and Algorand blockchains. The company has stated that this decision is part of its broader focus on 'enhancing community-driven blockchain support,' aiming to concentrate resources on platforms with substantial community interest and engagement.

In its official statement, Tether emphasized its commitment to maintaining a secure and efficient blockchain ecosystem. The company consistently evaluates the maintainability, usage, and community appeal of various transport layers to determine the deployment of USDT on specific blockchains. These evaluations underscore the importance of community-driven decisions in Tether's strategic roadmap.

Effective immediately, Tether will halt the minting of new USDT tokens on both the EOS and Algorand networks. However, users holding USDT on these platforms will still be able to redeem their tokens over a 12-month period, ensuring a smooth and minimally disruptive transition. Current data shows that the amount of USDT on these blockchains is relatively small. On Algorand, there is approximately $17 million USDT held by 39,000 users, while the EOS network hosts around $85 million USDT across 32,000 holders.

This strategic move by Tether serves as a response to the relatively low usage of USDT on EOS and Algorand compared to other blockchains like Ethereum and Tron. By reallocating resources, Tether aims to bolster security and efficiency on more widely-adopted platforms, thus supporting innovation within the crypto space.

Tether encourages community members to enhance the use cases of USDT on supported protocols and chains. Community input will play a pivotal role in guiding the future direction of Tether's blockchain integrations. The company suggests that smaller blockchain networks consider bridging tokens from other chains rather than relying on directly minted Tether tokens, especially if volumes remain low.

Assuring users of a careful and well-managed transition, Tether reaffirms its commitment to contributing to a sustainable and democratized financial system. This new approach of prioritizing community-driven decisions and optimizing resource allocation illustrates Tether's ongoing efforts to adapt to the evolving needs of the blockchain ecosystem.