The Stellar Development Foundation (SDF) is in the crypto news for announcing a new mandate today aimed at its network development. What’s more important is the fact that Stellar burned over 55 billion Stellar Lumens (XLM) tokens, the announcement reads.
In fact, the company took to Medium and published a post on November 4, stating that the development foundation drastically reduced the number of tokens in existence as part of an effort to become more efficient in the future.
Of the more than 85 billion tokens which were earmarked for SDF operations, giveaway programs and partnerships, Stellar burned over 55 billion. With a current price of $0.085 per token, the value of the burned tokens is right now around $4.7 billion.
The coin reacted positively to the news and after Stellar burned the sum, XLM is seeing a price increase of around 25% on the day at press time. This is normal following a burn but is still a big surge for XLM.
Right now, there are exactly 50 billion XLM in existence, according to the blog post. The remaining Lumens and the ones that Stellar burned are nicely illustrated in the following chart posted by the Stellar Development Foundation.
In the Stellar news, we can see that the SDF is confident about the burn and said that it was geared to making the system more efficient as it moves forward. The statement reads:
“SDF can be leaner and do the work it was created to do using fewer lumens. Over the years we’ve also seen that giveaways and airdrops have diminishing effects, especially in the outsized amounts our original plan was designed to support. So a smaller public-facing program would have just as much impact.”
Besides this, the development organization noted that it will pour 12 billion of the remaining tokens (worth $1.02 billion) into “an aggressive program of direct development and advocacy for Stellar.” SDF said that it expects to double its current staff of nearly 60 by the end of the year, too.
Stellar burned a lot of coins, but everyone is confident about the company’s plans. As it stands, 2 billion XLM ($170 million) will go into ecosystem support while 1 billion XLM ($85 million) are reserved for Stellar’s infrastructure grant program.
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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