Stellar Lumens Burn Results: XLM Price Soars

Stellar Lumens burn results show that the price of the cryptocurrency soared after what seems to be a very considered decision. Let’s take a closer look at the XLM news today.

From the previous 105 billion, after the burn, the Stellar Development Foundation got a net result of 50 billion XLM tokens. all of the Stellar Lumens burned tokens were in the possession of the foundation with about 20 billion in circulation.

The Stellar Development Foundation appears to have made a very cautiously considered decision and as the SDF explained during a conference at the Meridian in Mexico City:

‘’…in time and after a lot of thought, we’ve come to realize they’re [the SDF’s allocations] too large,” regarding to the 17 billion in the operating fund of the foundation and the 68 billion that is set aside for gieveaway programs.“SDF can be leaner and do the work it was created to do using fewer lumens,” the foundation continued explaining the muter effect airdrops and giveaways have.

The SDF considered a number of options for what it saw with the excessive supply of XLM. By working backward from the number of the XLM tokens already in supply, actually made no sense. In the end, the foundation’s view was that they needed to act in a way taking into account the idea that ‘’we should only keep what we’re confident we can actually use. And use relatively soon, at that-in the next ten years.’’

The Stellar Lumens burn results show that the burn allocation was not homogenous since a large portion dedicated to giveaways saw the biggest change- form 43 to 6 billion. Other changes were not as dramatic with the operations and partnerships budgets being cut from 17 to 12 billion and form 25 to 12 billion respectively. After the Stellar Lumens burn, the foundation reassigned the remaining tokens into four categories of ecosystem support, user acquisition, use case investment, and direct development.

The use case investment has the second-largest allocation at 10 billion with about 80 percent of that set aside to acquire companies or fund enterprises in return for equity. All of the grants will be made from half of the ecosystem support allocation. The immediate reaction of the market to the token burn news was highly positive and XLM jumped more than 20 percent after only an hour of the announcement.