On Monday, June 24, Tether, the issuer of the popular stablecoin USDT, announced its decision to halt the minting of USDT on the Algorand and EOS blockchain networks. The company cited plans to concentrate on blockchains with expanding communities as the reason for this change.
Although new token issuance has ceased, Tether assured that token redemptions on Algorand and EOS will continue for at least the next 12 months.
USDT Halted Because of Fading Community Popularity
In the statement, Tether insinuated that their decision to halt EOS and Algorand was driven by the need to prioritize community-driven blockchain support in their USDT endeavors. This decision came after thorough consideration and a series of assessments of the performance and maintainability of the USDT across different blockchains.
Tether’s statement stresses the firm’s commitment to balancing “between maintainability, usage, and community interest.” It also suggests that the decision to remove USDT from blockchains assesses the community interest, security architecture, usability, and network sustainability. Tether’s endgame is a proper allocation of its resources in blockchains with efficiency and security while still supporting innovation.
After thorough analysis, considering the above-mentioned, Tether decided to stop the issuance of USDT tokens on Algorand and EOS with a complete transition aimed at the next 12 months.
While making the announcement, the stablecoin issuer pledged to continue supporting other chains with more community popularity while encouraging expansion to different protocols.
Tether’s statement also emphasized its commitment to a smooth transition: “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.”
The company concluded by expressing gratitude for the community’s ongoing support and highlighting its mission to create a more “sustainable and democratized financial system for the globe.”
Previous Halts on Bitcoin and Kusama
This is not the first time Tether has halted the issuance of its token on blockchains. Last year, around August, Tether discontinued service issuance to USDT on three blockchains: Bitcoin, Bitcoin Cash, and Kusama. Ultimately, the users of USDT on the three chains were equally given 12 months to redeem their tokens. This 12-month period will lapse in August.
Tether’s decision to halt USDT in the three chains last year was driven by extended stagnation of growth in users and community.
When writing, Tether remains available in about 11 chains, including Ethereum, Tron, Avalanche, Kava, Liquid Network, Near, Celo, Polkadot, Solana, Ton, and Tezos.