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> They haven't burned a single token in the last year. They burned 1 billion tokens 6 months ago, back in August. Besides, why do people act like not burning
by phire 6y ago
> They haven't burned a single token in the last year.
They burned 1 billion tokens 6 months ago, back in August.
Besides, why do people act like not burning tokens is evidence of wrong-doing? That just shows ignorance for how tether have setup their accounts.
They have a "treasury account" where tether tokens go when people redeem them, and where they can quickly issue tokens when people deposit cash. They only need to issue more tokens when the treasury account gets low, and they only need to burn tokens when they have an excess in treasury.
It makes total sense that in the current bull market that they haven't had the need to burn many tokens. The burn in August only happened because they now have multiple tokens on multiple networks and their TRON treasury account had too much.
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All your remaining criticism about banking is 100% valid. And other peoples criticism about auditing and legal troubles.
I don't want to write comments on hackernews rebutting claims about Teather. I want the crypto market to go bust again so I can afford a new GPU. But so many people just parrot invalid criticism without understanding it.
- arcticbull 6y agoTrue, my implicit issue is that Paolo was justifying the Saturday billion tether prints by saying they were often chain swaps. If you’re doing a chain swap and minting new tokens do you not burn the old ones? Maybe I’m misunderstanding.
- phire 6y agoTether implements chain-swaps by depositing into the treasury account on one chain and withdrawing from the treasury account on the second chain. There is no printing/burning required. But there is a problem when a large wallet does a chain-swap. These are often exchange wallets with all their user' funds, and there simply isn't enough funds in the target chain treasury wallet. In these cases, new tokens need to be issued on the target chain. As for the tokens on the old chain, the treasury account just gets really large for a while. Perhaps they should be burning, but in this bull market, it looks like tether has just taken the approach of waiting and skipping issues until the treasury account gets down to a reasonable level. Tether document their treasury account balances on their transparency page[1] as "Less: Authorized but not issued" for each chain. Sure it's horrible that the transparency page is missing anything about real-currency reserve holdings (other than saying "All Tether tokens are backed 100% by Tether's reserves"), but they are quite transparent about all the on-blockchain stuff. You can also view the treasury accounts directly and view the inflow/outflow. Omni is here[2] and eth is here[3]. etherscan even has a nice 'value over time' graph [4] [1] https://wallet.tether.to/transparency https://wallet.tether.to/transparency [2] https://www.omniexplorer.info/address/1NTMakcgVwQpMdGxRQnFKyb3G1FAJysSfz https://www.omniexplorer.info/address/1NTMakcgVwQpMdGxRQnFKy... [3] https://etherscan.io/token/0xdac17f958d2ee523a2206206994597c13d831ec7?a=0x5754284f345afc66a98fbb0a0afe71e0f007b949 https://etherscan.io/token/0xdac17f958d2ee523a2206206994597c... [4] https://etherscan.io/token/0xdac17f958d2ee523a2206206994597c13d831ec7?a=0x5754284f345afc66a98fbb0a0afe71e0f007b949#tokenAnalytics https://etherscan.io/token/0xdac17f958d2ee523a2206206994597c...
- arcticbull 6y agoThanks for the thorough reply!