TL;DR
- Tether will stop issuing USDT on Algorand and EOS to prioritize community support and effective token usage.
- The decision is based on evaluations of usage and community interest to optimize resources.
- USDT on Algorand represents 0.08% of the total supply; on EOS, it’s 0.015%, indicating low adoption compared to other blockchains like Tron and Ethereum.
Tether, the issuer of USDT, the world’s largest stablecoin, has announced a decision affecting the Algorand and EOS blockchains. Their strategy aims to prioritize community-based support and effective usage of the USDT token, with the company stating it will cease issuing new units of USDT on these two platforms.
The decision is grounded in a thorough analysis of several key factors. According to Tether’s statement, the evaluation of “usage” and “community interest” has played a crucial role in this measure. The company seeks to optimize operational sustainability and ensure resources are effectively allocated to support operations on blockchains that benefit users and developers the most.
Tether Announces Strategic Transition to Prioritize Community-Driven Blockchain Support
Read more: https://t.co/UCL1MJt2WO— Tether (@Tether_to) June 24, 2024
Tether Redirects Resources in Pursuit of Efficiency
Currently, the circulating amount of USDT on Algorand totals approximately $85 million, representing just 0.08% of the total USDT supply. Meanwhile, on EOS, the figure is even lower, with approximately $17 million in USDT, equivalent to 0.015% of the total supply. These minimal proportions highlight the low adoption of USDT compared to other blockchains like Tron and Ethereum, where the majority of the supply is concentrated.
Tether assures users that despite halting USDT issuance, they will continue providing redemption services for the stablecoin on Algorand and EOS for the next 12 months. This redemption period will allow users to adjust their strategies and mitigate any potential impact on their operations.
Tether remains committed to staying at the forefront of innovation, with efficiency within the blockchain ecosystem being a central focus for the company. The decision to concentrate on platforms with greater capacity to meet community needs and expectations aligns with this vision. USDT aims to strengthen its position as a leader in the stablecoin market and maintain the trust of its users.
