August 14, 2022

Stellar Fund burned more than half of its cryptocurrency

Stellar Fund burned more than half of its cryptocurrency

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

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 held earlier. Therefore, it was decided to remove the excess ballast. To do this, the team in advance I 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 positively perceived a decline in volumecryptocurrencies, 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, the asset is trading at $ 0.796.

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