Stellar Foundation halved XLM amount

Stellar Foundation wants less, but more targeted XLM Airdrops

The old total of Stellar amounted to 105 billion XLM. 20 billion of them are in circulation. 17 billion XLM of which were stored in the Stellar Development Fund, another 68 billion Stellar Lumens were intended for distribution via Airdrop and partnership programs.

On the one hand, SDF has "burned" 5 billion XLM from the operating fund; However, the biggest change has been made by the Partnership and Air Drop programs: the SDF has destroyed 50 billion XLM from these pots. It seems that over the years the SDF has come to the realization that the amount of XLM did not support their desire to establish Stellar as an international payment standard.

SDF can be leaner and do the job for which it was created with less lumens. Over the years, we have also seen that giveaways and airdrops are having less and less effect, especially in the oversized quantities our original plan had envisaged. A smaller public program would have just as much effect.

Furthermore, Stellar's network and community are now "robust enough" to allow the SDF to take up less space in the ecosystem.

We are just one piece of a much larger whole, and the means we manage should reflect that

It says in the blog post to Token Burn.

How Stellar continues

The 12 billion XLM remaining in the Operating Fund will now be used primarily to further expand the Stellar Foundation. Above all, the SDF wants to hire more staff. A paradigm shift, says the Foundation:

Building human capital is a fundamental change of strategy for the Foundation. In the first five years after Stellar was founded, SDF was a minimalist organization. In early 2019, we decided to rethink this approach. As the ecosystem has grown, we have made ourselves more comfortable growing ourselves. We started offering full-time jobs to many developers and projects that might have received twinnings grants or other support from us in the past.

To dispel concerns that SDF is driving shindles with the Operating Fund, the 12 billion XLMs are held in trust wallets. Over the next four years, these will be successively unlocked (four billion XLM per year).

SDF has also provided an outlook for the remaining 12 billion XLMs from the partnership program.

With 10 billion XLM, the lion's share in promoting Stellar-based use cases. On the one hand, the SDF wants to promote two billion XLM in-house projects, which serve the development of use cases for Stellar. For example, one is currently working on a pay-and-hold wallet for the Latin American region, which is scheduled for launch in early 2020. The other eight billion XLM will flow into a fund that will invest in companies that develop Stellar Use Cases. This "Enterprise Fund" replaces the previous partnership program.

Two billion should flow into the support of the ecosystem. Specifically, it is about promoting independent developers who help improve the network infrastructure and projects that interface with the traditional financial system.

XLM course reacts as expected

The XLM price reacted to the announcement of the token-burn with strong increases of more than 30 percent in the meantime compared to the previous day. Currently, Stellar Lumens is trading at $ 0.081, nearly 40 percent higher than a month ago. That might be the least surprising in view of the sudden halving of the offer. How long XLM can maintain this level remains to be seen. Finally, the decision to destroy half of the stock could also be an indication of low demand for XLM.

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Disclaimer: This press release is for informational purposes only, the information does not constitute investment advice or an offer to invest. The opinions expressed in this article are those of the author and do not necessarily represent the views of CriptomonedaseICO , and should not be attributed to, CriptomonedaseICO .

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