- Tether has announced the discontinuation of support for EOS and Algorand blockchain implementations after evaluating the two chains
- The company has committed to continue redeeming USDT on these platforms for the next 12 months
- Tether has emphasized its focus on enhancing security and efficiency by supporting community-preferred networks
In a reversal from its years-long trend of blockchain expansion, Tether has announced that it will discontinue support for the EOS and Algorand blockchain implementations. The company said in a press release that “After thorough consideration” it has decided to stop minting on the two chains, although it failed to say exactly why. It did, however, give the list of criteria it uses to assess blockchains, suggesting that EOS and Algorand have failed to live up to its standards in one or more of these areas.
“Community Interest” is Key, Says Tether
Tether revealed its decision yesterday, stating that it constantly assesses the blockchains it uses, “striving to strike a balance between maintainability, usage, and community interest.” It then outlined the criteria it uses in its decision-making:
Community interest plays a pivotal role when we bring USD₮ to specific blockchains. We carefully evaluate the network’s security architecture to ensure the safety, usability, and sustainability of the chosen blockchain. Our goal is to allocate resources where they can best enhance security and efficiency while continuing to support innovation across the crypto landscape.
Effective June 24, 2024, Tether will stop minting USDT on these platforms, although they will continue to redeem the tokens on EOS and Algorand for the next 12 months, ensuring a smooth transition for users. Tether assured its community that this transition would be handled in a way that minimized disruption, noting, “Our top priority remains delivering a seamless user experience, and we are committed to facilitating a hassle-free transition.”
The company also encouraged the community to expand the use cases of USDT on other protocols, signaling a broader shift towards more popular and secure blockchain networks.
Tether Announces Strategic Transition to Prioritize Community-Driven Blockchain Support
Read more: https://t.co/UCL1MJt2WO— Tether (@Tether_to) June 24, 2024
Even though Tether did not reveal why it will stop using EOS and Algorand, reading between the lines it seems that the company is concerned over how much the two blockchains are being used. Reduced usage and interest can sometimes lead to security vulnerabilities as fewer validators means a higher risk of centralization and a malicious takeover, and it’s fair to say that neither blockchain has really set the world on fire.
