The Stellar Development Foundation (SDF) has destroyed 55 billion Stellar lumens (XLM) tokens, more than half of the total stock of the cryptocurrency, worth about $ 4.5 billion.
The news immediately had a huge impact on the crypto race. The stellar rate shows growth of no less than 18% to $ 0.0816 at the time of writing.
The total amount of Stellar lumens has been reduced from 105 billion tokens to 50 billion. There are currently 20 billion tokens in circulation.
The SDF writes in a blog post on November 4 that this so-called coin burn was carried out to make the ecosystem more efficient and that no more will take place in the future.
Furthermore, the SDF reports that of the remaining 50 billion lumens, the following will be distributed:
- 12 billion is invested in the direct development and promotion of the cryptocurrency,
- 2 billion goes to supporting the ecosystem,
- 10 billion goes to identify and invest in use cases,
- 2 billion goes to the development of new products,
- 8 billion goes into the Stellar Enterprise fund,
- 6 billion is saved for freebies like airdrops and
- 2 billion goes to marketing, communication and public relations (PR).
Denelle Dixon, CEO of SDF, gave a speech on November 4 about Stellar lumens where she had announced the coin burn. The full speech can be viewed below:
At the beginning of last month, SDF announced that the built-in inflation mechanism of Stellar had turned off lumens at the request of the community.
Travala.com recently added Stellar lumens to the platform as a payment method. Shortly before, Binance added Stellar to its new strike platform and Coinbase added the cryptocurrency for its New York customers.