Tether Halts USDT Minting on EOS and Algorand

The decision is reportedly part of Tether’s strategy to optimize the blockchain ecosystem by focusing on platforms with high community engagement.

Tether Announced The company will cease issuing USDT stablecoins on the EOS and Algorand blockchains, effective immediately, as reported on June 24. The decision is part of Tether’s strategy to optimize the blockchain ecosystem by focusing on community-driven support and resource allocation.

While Tether will stop issuing new USDT tokens on these platforms, redemptions of existing USDT on EOS and Algorand will continue for the next 12 months, a period intended to ensure a smooth transition for users and minimize disruption.

Tether released USDT on the Algorand blockchain in 2020, after rolling it out on EOS in May 2019. Despite initial optimism, adoption of USDT on these platforms remains low.

Current USDT Distribution

Tether’s USDT stablecoin is currently distributed across 16 different blockchains. $113 billion There is $10 million worth of USDT in circulation. The majority of it is concentrated in Tron and Ethereum, with about $59 billion in Tron and about $52 billion in Ethereum. In comparison, Algorand and EOS hold much smaller amounts of USDT, at $17 million and $85 million, respectively.

On Algorand, there are roughly 39,000 people holding $17 million worth of USDT. On EOS, there are 32,000 people holding $85 million worth of USDT. These numbers are tiny compared to the massive amounts on Tron and Ethereum.

Community-driven focus

In its announcement, Tether emphasized the importance of community input in shaping the future direction of blockchain integration. Tether aims to leverage community-driven innovation by encouraging the expansion of USDT use cases on supported protocols and chains. This suggests that smaller chains may benefit from bridge tokens from other networks rather than relying on direct issuance by Tether.

The decision to cease USDT issuance on EOS and Algorand reflects Tether’s broader goal to focus resources on platforms that align with the interests of their communities and offer sustainable returns. Given that EOS and Algorand together represent less than 0.1% of the total USDT supply, this transition will allow Tether to better allocate resources to more widely used platforms.

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