Stellar Foundation “burned” more than half of its cryptocurrency

Stellar Foundation “burned” more than half of its cryptocurrency

Stellar: XLM Could ROCKET in 2021, Here’s Why!! 🚀🌑

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

In total, 105 billion XLM were created during the initial emission, but currently there are only 20 billion tokens in circulation. After burning most of the cryptocurrency, its total amount was reduced to 50 billion.

According to the management of the development fund, the destruction is due to the difficulties of entering a market with such a huge reserve of lumens previously held. Therefore, it was decided to remove the excess ballast. To do this, the team calculated in advance how many assets they might actually need in the next decade, and deduced the optimal balance.

After the destruction, 30 billion XLM remained at the disposal of the developers, distributed among various funds. 12 billion tokens are 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 for maintaining infrastructure and paying grants to the community.

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

As a reminder, Stellar launched a 2 billion XLM Airdrop for Keybase users in September.

Stellar Foundation 'burned' more than half of its cryptocurrency

text: Ivan Malichenko, photo: i2.wp, chart: TtradingView