Tether, the issuer of USD₮ tokens, will stop minting USDT on EOS and Algorand, effective immediately, giving users one year for redemptions. This strategic move aims to enhance community-driven blockchain support.
Tether evaluates blockchain networks based on security and usability to prioritize community interest and resource allocation. The company emphasizes the importance of community input in determining the deployment of USD₮ on specific blockchains. Currently, Algorand holds $17 million USDT across 39,000 holders, while EOS has $85 million USDT across 32,000 holders, which are low compared to other chains.
This decision suggests smaller chains should consider bridging tokens rather than relying on direct minting by Tether. The transition will be managed carefully to minimize disruptions, reaffirming Tether’s mission to enhance a sustainable and democratized financial system. This strategic shift underscores Tether’s focus on platforms that align with community interest and provide sustainable benefits.
