February 22, 2024

Stellar Foundation burned over 50% of total XLM token supply

Stellar Foundation burned over 50% of total XLM token supply

The Stellar Foundation burned 55 billion Lumens (XLM) worth $4.4 billion as one of the steps towards building a newdevelopment strategies.

Stellar Foundation – non-profitThe organization that supports the development of the Stellar blockchain announced on Monday that it would reduce the supply of XLM to 50 billion. According to a company blog post, the fund will allocate the majority of the remaining funds to develop the Stellar blockchain, find new use cases and support partnerships. Notably, the 8 billion remaining lumens will be used to invest in or purchase businesses “with potential for the Stellar ecosystem.”

The blog post says StellarThe Foundation also closes airdrop campaigns. Thus, the company has already burned 50 billion of the 68 billion lumens previously allocated to this business. However, airdrops are still possible in the future. The fund will continue to provide 4 billion tokens to develop partnerships with applications that have significant market weight in the ecosystem.

In September, the Stellar Foundation announced the transfer2 million XLM tokens via the Keybase messenger app. Last November, the fund also partnered with cryptocurrency wallet provider Blockchain to transfer $125 million worth of XLM.

As the ad was released, lumens prices increased by more than 20%.