Stellar (XLM) Price Skyrockets 20 Percent as Half of Its Supply Gets Burned

News
Tue, 11/05/2019 - 05:59
Alex Dovbnya

XLM is on a tear after the Stellar Development Foundation burned more than half of the token's supply

Cover image via www.123rf.com

The price of Stellar (XLM) has exploaded by more than 25 percent after half of its supply got destroyed. At the time of writing, XLM is changing hands at $0.081. 

Related
Forbes: IBM Launches Stellar-Based Payment Network, Gets 6 Global Banks to Create Stablecoins on It

The crypto project, which was co-founded by former Ripple CTO Jed McCaleb, has burned more than 50 percent of XLM tokens by sending them to an address without signers. As a result, the total supply has dwarfed to 50 bln tokens (as opposed to 105 bln tokens before the burn took place).  

In its Medium blog post, the Stellar Development Foundation (SDF) explains that it destroyed the lion's share of tokens that were reserved giveaway and partnership programs.

image by medium.com

The SDF claims that there will no be other token burns since the number of lumens in circulation now aligns with their mission.

We’re extremely excited about this renewed focus for SDF and also about the transparency we will bring to these efforts.    

Related
Stellar (XLM) Debuts New Logo, Saying Goodbye to Rocket Ship

With 20 bln XLM out in the world, the SDF has 30 bln tokens at its disposal. The foundation explains that it will spend 12 billion on direct development of the network. It also has two billion for 'ecosystem support' and 10 billion for investing in Stellar use-cases.  

Given that giveaways have proven to be "the least effective program for Stellar," it will only keep six billion lumens.   

 
 

Subscribe to U.Today on Twitter and get involved in all top daily crypto news, stories and price predictions!

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

Top 10 Best Cloud Mining Sites in 2020
TOP 20 Best Bitcoin Trading Bots in 2020

This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy