Stellar destroys more than half of all XLM, price rises by 35%

Stellar destroys more than half of all XLM, price rises by 35%

The Stellar Development Foundation (SDF) has donated a total of 55 billion XLM. These have a combined value of 3.95 billion euros (4.4 billion dollars). Stellar thinks the product is strong enough and that these coins are no longer needed. Stellar also stops giving away XLM for free via airdrops.

How are all these XLM distributed?

To simplify the ecosystem there are three pots with XLM.

  1. 20 billion XLM in the hands of the community
  2. 17 billion XLM in the operational fund of SDF
  3. 68 billion reserved for giveaway programs

XLM is not mined, so the coins above are all coins in circulation. Stellar thinks category 2 and 3 are too big, all coins are also from here. Logically, no XLM from investors and the community will be destroyed.

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Stellar states that over the years they have seen that giveaways and airdrops have less and less effect. Stellar is also responsible for one of the biggest airdrops of all time. In 2018, Stellar worked with Blockchain.info wallet to provide free XLM we. That was a divided success.

What does the distribution look like now?

After destroying the coins, the distribution now looks like this:

  1. 20 billion XLM in the hands of the community
  2. 12 billion XLM in the operational fund of SDF
  3. 18 billion reserved for giveaway programs

SDF is convinced that these are enough XLMs to make Stellar the worldwide standard payment method.

Staff growth

The remaining 12 billion from SDF’s operational fund will be spent on what SDF calls an aggressive program. This program consists of the direct development of Stellar and the promotion of interests.

In addition, more is being invested in staff. In January 2019, SDF had only a handful of employees. Now there are almost sixty. The plan is to double that number by the end of 2020.

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These 12 billion XLM are said to be fixed. Over the next four years, 3 billion XLM will be released each year.

What is burnen?

Burnen means nothing more than destroying coins. In practice, coins are sent to an unreachable receiving address. In the case of Stellar, that address is GALAXYVOIDAOPZTDLHILAJQKCVVFMD4IKLXLSZV5YHO7VY74IWZILUTO. You can see this address via the block explorer.

The news was shared around midnight last night. Within one hour the price of XLM rose by 35% from 0.062952 to the peak of 0.085003. Meanwhile, the XLM course has fallen slightly again.


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