ESG Disclosure
ESG (Environmental, Social, and Governance) regulations for digital assets aim to address their environmental impact (e.g., energy-intensive mining), enhance transparency, and ensure compliant governance practices. These regulations align the digital token industry with broader sustainability and social objectives by promoting adherence to standards that minimize risks and improve credibility.
Asset Details
- Legal Entity Identification Code: 54930069NLWEIGLHXU42
- Consensus Mechanism: USD Tether operates on multiple networks, including Algorand, Avalanche, Bitcoin, Bitcoin Cash, EOS, Ethereum, NEAR Protocol, Polygon, Solana, Tezos, and Tron.
Network-Specific Consensus Mechanisms
Algorand
Pure Proof-of-Stake (PPoS):
- Uses verifiable random functions (VRF) to select block producers.
- Committees validate blocks based on staked ALGO tokens.
- Energy-efficient with low transaction fees (~0.001 ALGO per transaction).
Avalanche
Avalanche Consensus:
- Combines Snowball, Snowflake, and Avalanche protocols for rapid finality.
- Validators stake AVAX tokens; rewards include block rewards and transaction fees.
Bitcoin
Proof-of-Work (PoW):
- Miners solve cryptographic puzzles to validate transactions.
- Energy-intensive; block rewards halve every four years.
Ethereum
Proof-of-Stake (PoS):
- Validators stake 32 ETH to propose/validate blocks.
- Rewards include newly minted ETH and transaction fees.
Polygon
Hybrid PoS-Plasma:
- Validators stake MATIC tokens; delegators earn shared rewards.
- Low transaction fees vs. Ethereum.
Incentive Mechanisms
| Network | Rewards | Penalties |
|--------------|----------------------------------|-------------------------|
| Algorand | Staking rewards (~7% APY) | Slashing for misconduct |
| Ethereum | Validator rewards (dynamic APY) | Slashing/inactivity fees|
| Solana | SOL staking rewards | Slashing |
👉 Compare staking rewards across networks
Energy and Emissions Report
Energy Consumption
- Total: 19,798,997 kWh/year
- Primary Sources: Merged node location data with EEA renewable energy stats.
Emissions
- Scope 2 (Indirect): 7,802 tCO2e/year
FAQ
1. How does Tether maintain stability?
Tether (USDT) is pegged 1:1 to USD, backed by reserves including cash, cash equivalents, and commercial paper.
2. Which network is cheapest for USDT transactions?
Algorand (~$0.0001 per transaction) and Polygon ($0.01–$0.05).
3. What are the risks of staking USDT?
Smart contract vulnerabilities and platform insolvency risks.
👉 Learn about secure staking practices