Stellar Development Foundation (SDF) has burnt over half of the XLM supply as a part of strategic development goals.
SDF burns half XLM supply
SDF has burned 55 billion Stellar Lumen (XLM) tokens that are worth over four billion dollars ($4.4B) at the current trading price. The company conducted the move as part of a new set of development goals set for the platform. The total number of XLM tokens in the supply was 105 billion; now, there are a total of 50 billion XLM tokens.
After the burn, the company announced that it is canceling Stellar’s World Giveaway Program as well as Partner Giveaway programs. The foundation has a history of doing giveaways and airdrops. Most recently, the company joined hands with networking platform Keybase to carry an airdrop of XLM tokens worth nearly 120 million US dollars. This airdrop was considered the world’s largest distribution ever.
Regardless of the size, the airdrop had little to no effect on Stellar’s ecosystem as most of these coins remained unclaimed while a high percentage was exchanged for other crypto assets.
The company’s blog post read that the company wants to put quality over quantity as it has gained experience from its airdrops. It noted that airdrops “his diminishing effects,” mainly when they are conducted in an “outsized amount.” These reasons encouraged the company to reduce the XLM supply to focus on the platform’s goals.
The company will be allocating the remaining XLM supply in the following way:
The company is headed towards new developments, and it believes that the reduced supply “aligns better” with their current mission. It also ensured that the company would not burn any additional lumens.
Following the token burn, the price of XLM increased by over 20 percent. The price movement seemed to be restricted near 0.070 dollars, but now it has crossed over 0.080 dollars.
Featured image by Pixabay.
Pie Chart by Stellar Development Foundation.