July 22, 2024

Stellar Fund burned more than half of its cryptocurrency

The Stellar Foundation "burned" more than half of its cryptocurrency

The Stellar Development Fund destroyed 55 billion of its XLM reserves to increase the market potential of the project.

During the initial issue, everything was created105 billion XLM, but only 20 billion tokens are currently in circulation. After burning most of the cryptocurrency, its total amount dropped to 50 billion.

According to the management of the development fund, the destructiondue to the difficulties of entering the market with such a huge supply of lumens previously held. Therefore, it was decided to remove excess ballast. For this purpose the command in advanceI calculated how much they might really need assets in the next decade, and deduced the optimal balance.

After destruction at the disposal of developers30 billion XLM left, distributed over various funds. 12 billion tokens were set aside for the development and maintenance of the organization itself, another 10 billion for corporate investments, 6 billion for marketing campaigns and promotions, and the remaining 2 billion was allocated for maintaining infrastructure and paying grants to the community.

The market reacted positively to the volume reductioncryptocurrency, and a few hours after the announcement, the XLM rate jumped by more than 20% (from $0.07 to $0.0844), but a subsequent correction lowered the price. At the time of publication of the material, the asset is trading at $0.796.

The Stellar Foundation "burned" more than half of its cryptocurrency
Recall that in September, Stellar launched Airdrop at 2 billion XLM for Keybase users.