Heres Why Tether Has Ceased Minting USDT On EOS And Algorand
Stablecoin issuer Tether has said it will stop minting the U.S. dollar-pegged USDT token on the Algorand and EOS blockchains. Effective immediately, Tether will no longer issue new USDT tokens on Algorand and EOS. However, Tether will continue redeeming the stablecoin on the two chains for the next 12 months.
Transition To Be Hassle-Free
Tether has relinquished support for Algorand and EOS implementations by halting minting on both blockchains today.
The company said in a June 24 blog post that this move is a step towards optimizing its blockchain ecosystem by prioritizing community-driven support and resource allocation.
However, Tether will continue to support the redemption of USDT on these two blockchains for the next 12 months, when the company may evaluate and announce further changes.
We assure our community that this transition will be executed meticulously and with minimal disruption. Our top priority remains delivering a seamless user experience, and we are committed to facilitating a hassle-free transition.
Tether added that removing Eos and Algorand-based USDT minting follows a thorough evaluation of the network security, usability, and sustainability of the chains. The company strives to allocate resources to projects that enhance security and efficiency while bolstering innovation within the crypto ecosystem.
Previous Halts On Bitcoin, Bitcoin Cash, And Kusama
Algorand and EOS are not the only chains that Tether has opted to abandon for new USDT issuance. In August 2023, Tether stopped minting USDT on three other blockchains: Kusama, Bitcoin Cashs Simple Ledger Protocol (SLP), and the original USDT blockchain, the Omni Layer Protocol. The first Tether tokens were issued on the Bitcoin blockchain through Omni in October 2014.
Tether now issues its USDT stablecoin on Ethereum, Avalanche, Celo, Kava (Cosmos), Liquid Network, NEAR, Solana, Polkadot, and Tron. Notably, the Ethereum and Tron blockchains host the lions share of the USDT supply.
While removing these chains, Tether has been actively integrating new blockchain networks such as The Open Network (TON). In April 2024, Tether launched TON-based USDT and has so far minted roughly $500 million worth of stablecoins based on the platform, or 0.44% of the aggregated circulating supply of USDT.
According to CoinGecko data, the price of tether has gained 0.1% over the past 24 hours and currently trades at $1.
Read more: https://zycrypto.com/heres-why-tether-has-ceased-minting-usdt-on-eos-and-algorand/
Text source: ZyCrypto
