The Bitcoin Omni Layer will no longer be used to issue the Tether (USDT) stablecoin, but redemptions will remain possible for at least a year.
The issuer of Tether, the first stablecoin, has announced the termination of its Bitcoin Omni Layer version in an unexpected move that reflects the changing dynamics of the cryptocurrency market.
Users’ interest in this historical version of Tether, one of the first stablecoins to exist, has waned, leading to the decision to say goodbye. The announcement made on August 17th also stated that Tether’s Bitcoin Cash and Kusama forks will meet a similar demise.
A New Chapter for Tether
The message emphasizes that no new Tether coins will be added on the Bitcoin Omni layer, Kusama, or Bitcoin Cash going forward as Tether makes this strategic change. The lifeline for redemption, however, is still extended, ensuring users that there would be options for redemption for at least a year.
Tether makes strategic decision, to meet community demands. After careful consideration, Tether will discontinue support for the ⛓️Kusama, Bitcoin Cash SLP and Omni Layer (redemptions and chain-swaps will proceed as normal).
— Tether (@Tether_to) August 17, 2023
Details : https://t.co/A9hB53bQKKpic.twitter.com/LMEYv4z4lV
As the horizon of this transitional phase approaches, Tether’s team promises to keep users informed through forthcoming announcements detailing the post-one-year redemption plan.
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The Bitcoin Omni Layer, which had its beginnings as “Mastercoin” in July 2013, is two years older than the Ethereum network. Tether’s initial entry into the stablecoin market in October 2014 was based on the foundation of this early smart contract system, which was constructed on top of the Bitcoin network. It quickly overtook stablecoins like BitUSD and NuBits to become the one with the greatest market cap.
Reflecting on the Past and Shaping the Future
There were complex factors taken into account when Tether decided to retire the Omni Layer stablecoin. It serves as a reaction to the changing dynamics of the cryptocurrency market. The Omni Layer version has had difficulties due to the declining popularity of well-known coins and the rising value of USD on alternative blockchains. Inevitably, this has caused USDT Omni use to decrease.
Tether’s quest does not end here, though. The business looks forward to an era of innovation and integration. Tether makes a suggestion that, if the Omni Layer version sees a rise in usage, it might be revived as the Omni Layer chapter comes to an end.
Additionally, Tether is actively influencing this future with the creation of the “RGB” Bitcoin smart contract technology. This ground-breaking project increases interest in a reinvented Tether that smoothly integrates with the Bitcoin network, demonstrating Tether’s commitment to evolution.
Tether’s announcement echoes in a space filled with the echoes of stablecoin rivalry as a testament to change and adaptability. Tether’s dominance has been challenged by rivals like Binance’s First Digital USD (FDUSD) and Paypal’s Paypal US Dollar (PYUSD), which are driving the market toward greater innovation and resilience. With a respectful homage to its heritage and a firm step into the opening vistas of the crypto cosmos, Tether begins a new chapter.
Related: PayPal Launches PYUSD Stablecoin to Facilitate Payments