Tether has stopped redemption of USDT and freezes the remaining tokens into five blockchains. By dubbing these “legacy blockchains,” the company is completely removing USDT from these ecosystems.
Specifically, they are caught up in the Omni Layer, Algolan, Bitcoin Cash SLP, Kusama and EOS. The prolonged support remains until September 1st, so users will have plenty of time to move the stubcoin to various networks.
Tether’s Changing Blockchain Strategy
Tether, the world’s largest stubcoin issuer, has changed dramatically over the past few years. In late 2023, support for three of these five blockchains was partially discontinued: Kusama, Bitcoin Cash SLP, and the Omni Layer.
The company claimed it would reintroduce support if user activity increased, but this did not happen, and the tether finally pulled the plug.
“As the digital asset ecosystem evolves, Tether is committed to adapting along it. Sunset support for these legacy chains can focus on platforms that provide greater scalability, developer activity and community engagement.
To put it in fairness, Tether is justified by calling these blockchains legacy protocols. For example, the Omni Layer was a prominent component of the 2010s crypto ecosystem, but is completely hidden. These protocols were an important stepping stone a few years ago, but their days are over.
Tether reviewed usage, market demand and direct community feedback to reach this decision.
So, as we’re expanding with less resources, what’s the next step for tether? Last August, Ardoino argued that Tether was not pursuing its own blockchain. Nevertheless, the company has been working on several blockchain infrastructure and outreach programs for the next few months.
Instead, the tether Refocusing blockchain efforts in new directions. Five months ago, the company plans to add an increase in support for the Lightning network and do the same again.
Going forward, the company will prioritize the L2 protocol for USDT expansion.
Ultimately, this restructuring makes Tether most likely to meet the needs of its users and optimize the blockchain support infrastructure. Hopefully, the company will continue to promote its new protocols as the entire ecosystem develops.
Post-Tether is removing USDT from these five legacy blockchains.
