Tether, the issuer of the world's largest stablecoin, has announced it will stop minting its dollar-linked USDT token on the Algorand and EOS blockchains. This decision is part of a “strategic transition to prioritize community-driven blockchain support,” according to a blog post by Tether on Monday.
Tether's move aims to “strike a balance between maintainability, usage, and community interest,” reflecting its commitment to supporting blockchains with significant community engagement and practical usage.
Key details of the transition:
- End of Minting: New USDT tokens will no longer be minted on Algorand and EOS starting Monday.
- Redemption Period: Despite halting new minting, Tether will continue to redeem USDT on these blockchains for the next 12 months.
Current USDT Distribution:
- Total Supply: According to Tether's website, there is approximately $113 billion of USDT in circulation, spread across 16 different blockchains.
- Major Blockchains: The majority of USDT is concentrated on two blockchains: $59 billion on Tron and $52 billion on Ethereum.
- Algorand and EOS: On Algorand, there is about $85 million of USDT, representing only 0.08% of the total supply. EOS has an even smaller share, with $17 million, or 0.015% of the total supply.
This strategic shift underscores Tether's focus on optimizing its operations and aligning resources with blockchains that have substantial user bases and active communities.