Tether will stop supporting three blockchains – Bitcoin Omni, Bitcoin Cash SLP, and Polkadot’s Kusama test chain. This change aims to meet community needs and encourage innovation. On these blockchains, there’s about $240 million USDT on Omni, $986,000 on Bitcoin Cash SLP, and $1.49 million on Kusama.
They wrote, “Tether will embark on a strategic transition, discontinuing support for the Kusama, Bitcoin Cash SLP and Omni Layer implementations. Yet we believe in the potential of the Omni Layer and the transformative power of decentralized exchanges.
Tether’s transition process involves several steps: As of August 17, 2023, they will halt the creation of USD₮-Omni, USD₮-Kusama, and USD₮-BCHSLP. However, the redemption of these tokens will continue as usual for at least the next 12 months, and potential changes beyond that timeframe will be communicated later.
Additionally, users can exchange USD₮-Omni, USD₮-Kusama, and USD₮-BCH-SLP for other supported chains on platforms like Bitfinex. This transition reflects Tether’s commitment to transparency and adaptability.
Explaining the reason, the company said, “The Omni Layer faced challenges due to the lack of popular tokens and the availability of USD₮ on other blockchains. This led many exchanges to favor alternative transport layers, leading to a decline in USD₮ usage on Bitcoin using the Omni Layer.”
Tether explained that the Omni Layer encountered difficulties over time due to a lack of widely used tokens and the presence of USD₮ on different blockchains. This caused exchanges to prefer other methods, resulting in reduced USD₮ usage on Bitcoin’s Omni Layer. They emphasized their commitment to consistency, transparency, and open procedures as an ethical organization, even if it means making challenging decisions.
They concluded, “We believe the market should decide which protocols and blockchains are utilized for the transfer of value.”