The Stellar Development Foundation decided to cut the token supply of XLM in half in a bid to increase the adoption of the coin as well as to campaign for the removal of the inflation on the network so let’s find out more in the upcoming Stellar news below.
Stellar XLM is a payment protocol that wants to connect payment systems, people and banks. the current price of the asset is down by 93% from its all-time high of $0.72 which was set in 2018. The market cap is now at $1.31 billion on the 20.2 billion XLM in circulation with $115 million in exchange-traded volume in a single day. XLM is now ranked on the 13th position on the market cap table, briefly surpassing Tron, Monero and Cardano in 2019 after it getting intertwined in April 2019. The Stellar Development Foundation was created by Jed McCaleb and Joyce Kim back in 2014.
The SDF was created in order to promote global financial access and inclusion of the expanding worldwide access to the low-cost financial services by developing and maintaining technology and partnerships. The SDF leadership includes the CEO of the platform Denelle Dixon and Jed McCaleb. The board of directors includes Stellar’s chief scientist David Mazieres, Shivani Siroya, Keith Rabois and Greg Brockman. The foundation was incorporated in 2014 as a non-stock nonprofit corporation and if applied for a distinction in 2015 but still hasn’t obtained tax-exempt status.
The XLM genesis block minted 100 billion tokens with a 1% per year supply growth rate. The coins were created to satisfy the yearly inflation rate but they were distributed through the inflation pool including the network transactions fees. In 2019, the SDF released a proposal to remove the inflation rewards entirely since they believed the inflation didn’t benefit the projects that were built on the platform will lead to scalability issues in the future.
The Stellar Development foundations cut tokens again as it did back in 2019 but continued to hold 29 billion XLM collectively as CEO Dixon explained:
“As much as we wanted to use the lumens that we held, it was very hard to get them into the market.”
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]