- Tether, the stablecoin giant, has announced the cessation of support for Algorand and EOS Blockchains.
- The phase-out is set to occur over the next 12 months, during which other modifications may be considered.
- Previously, Tether had also discontinued support for the Omni Network, indicating a strategic shift in their operations.
Tether halts support for Algorand and EOS Blockchains in a strategic move, emphasizing security and efficiency within their network.
Tether to Cease USDT Minting on Algorand and EOS Blockchains
Tether, a leading name in the stablecoin market, will stop minting new USDT tokens on the Algorand and EOS Blockchains starting June 24. The announcement detailed that despite ceasing new token issuance, existing tokens will remain functional for the next year as part of a planned, minimal-disruption phase-out. This move is in line with Tether’s broader strategy to balance their ecosystem efficiently and securely.
Smooth Transition Assured with Minimal Disruption
Tether assures stakeholders that the transition will be meticulously managed to minimize any disruption. The company’s main goal is to maintain a seamless user experience. “We ensure our community that this transition will be carried out with utmost care to ensure minimal disruption. Our highest priority is providing an uninterrupted user experience,” Tether stated.
Tether’s Past and Present Blockchain Transitions
Last year, Tether halted support for USDT on the Bitcoin (BTC) Blockchain through the Omni Network. This year, similar to their approach with Algorand and EOS, Tether maintained redemption mechanisms for USDT-Omni and other blockchain variants for at least a year. Recently, Tether integrated its USDT with Binance’s Toncoin ecosystem, expanding deposit and withdrawal options significantly.
Insignificant Impact on Total USDT Circulation
Algorand and EOS represent a marginal portion of the total USDT circulation. As of June 22, Algorand-based USDT accounted for approximately 17 million USD, or about 0.01% of the total USDT supply, while EOS-based USDT made up roughly 75.5 million USD, constituting around 0.06% of the overall supply. Consequently, these changes are expected to have a negligible impact on the stablecoin’s total market.
Conclusion
Tether’s decision to withdraw support from Algorand and EOS Blockchains is a calculated move to enhance security and efficiency within its ecosystem. By strategically reallocating resources, Tether aims to sustain innovative growth while ensuring robust network operations. Users can expect a seamless transition with minimal service disruptions, reflecting Tether’s commitment to maintaining a stable and secure user experience.
