Home Stellar Lumens News Stellar Price Climbs As Stellar Foundation Burns it’s 55 Billion Supply

Stellar Price Climbs As Stellar Foundation Burns it’s 55 Billion Supply


  • The tenth-largest cryptocurrency and known Bitcoin rival Stellar lumens has suddenly climbed.
  • The recent spike in XLM price caused by the burning of over 55 Billion.
  • Half of Stellar’s Token supply burned by Stellar Development Foundation which worth across $4.7 billion. 

The popular cryptocurrency platform Stellar Foundation has burned it’s half of the supply in XLM token. They burned around 55 billion XLM supply that worth around $4.7 billion USD. On Monday the foundation has announced it publicly that they have done this for the growth of the network. The announcement was done on the platform of the Stellar Meridian Conference by CEO of the Stellar Foundation, Denelle Dixon.

The foundation has taken this step of destroying half of the circulation of the XLM token on the network because they want the network to be more efficient in the coming future. The total of around 85 billion of the XLM tokens was designate for the destroying by the SDF and out those 55 billion got destroyed. Each token holds the value of $0.085 and this concludes the total value of 55 billion XLM worth $4.7 billion. This destroying of the tokens has affected the coin positively and the currency is experiencing a 20% to 25% hike in the value.

Now there are around 50 billion XLM tokens that are present in the market, previously it was around 105 billion. Around 200 attendees were present when Dixon announced the news and she said,

“We didn’t start by wanting to burn. We started by asking, ‘What do we need?”

She added,

“As much as we wanted to use the lumens that we held, it was very hard to get them into the market.” 

Dixon also said,

“To derive a plan from an arbitrary number serves no purpose.”

The Stellar organization decided that they only want to stick to the number they could utilize over the time of 10 years and adjust with that only. The foundation also posted a post on Medium in which they wrote,

“SDF can be leaner and do the work it was created to do using fewer lumens. Over the years we’ve also seen that giveaways and airdrops have diminishing effects, especially in the outsized amounts our original plan was designed to support. So a smaller public-facing program would have just as much impact.”

The attendees also welcomed the new information with warmness and Dixon received a round of applause. After the announcement yesterday the price went up by 14%.

Dixon gave an interview with CoinDesk in which she stated,

“I don’t know. I really just don’t have a sense at all of what the market response is. From my standpoint, it’s how the ecosystem feels about it. We got a lot of positive response from the ecosystem because we are right-sizing what the foundation has and the foundation has and the foundation holds.”

Now the foundation has authority over 30 billion of XLM and it is divided into various aspects. The direct development fund which was known as operations previously has around 12 billion XLM and it is for supporting the foundation. On the other hand, 1 billion XLM goes to the infrastructure and 1 billion for the currency support and these 2 billion comes under the “ecosystem support”.

The 10 billion XLM tokens hold by the Stellar for the investment purposes, which Stellar has 2 billion new products investment in the market and other 8 billion for the enterprise treasure. On the other hand, in the end, the stellar foundation has 6 billion under the ‘user acquisition’ and in this 6 billion is divided as 4 billion for the advertisement of in-app and 2 billion for the stellar marketing.

Download our App for getting faster updates at your fingertips.

en badge web generic.b07819ff

Arushi Dubey
Arushi Dubey is a student of Bachelor in Arts( Psychology). She is pursuing Psychology in arts with English literature and French Language. She is well versed in the English language. She is good at expressing her thoughts into words. She is still getting more and more trained in gathering knowledge related to Crypto Currencies and expressing them.

We Recommend

Top Rated Trading Platforms

Top Rated Cryptocurrency Exchange


Must Read

Take Out a Crypto Loan with Bitfinex Borrow

Bitfinex Borrow enables borrowers to use crypto holdings to secure a crypto loan that can be used for trading or be withdrawn...

XRP Bulls Unable to Hold Levels Above $0.260 Signaling for Potential Consolidation

XRP price levels were able to break above the crucial mark of $0.260 on Tuesday's market session as the community had buy-back...

EagleFx Services Review

Headquartered at the Commonwealth of Dominica, Eaglefx was formed in 2019 with a vision to ease trading for its customers and give...

Coinmerce Registered at the Dutch Central Bank

Coinmerce can proudly announce that we have been added to the crypto register of the Dutch central bank on November 9th, 2020. Of...

Binance as the Leader of Spot and Derivatives

Binance has again surpassed its competitors in terms of spot tradingBinance achieved a volume of $164.8 billion from only the derivatives market

Dash Trading in Critical Support Area Unable to Regain its Positive Momentum

Dash is still trading negative after breaking below the major support level of $65.00 and unable to revive its positive momentum The DASH/BTC...

Related News

Daily Movers of Cryptomarket: BTC, DASH, ZEC, XLM

The bulls are now creating a major positive impact on the overall market conditions after a positive consolidation from the past two...

Daily Movers of Cryptomarket: XLM, LSK, BNB, ZEC

There hasn’t been any significant change in the levels of the cryptocurrencies comparing to the past day.  The overall market capitalization stands at...

Will Stellar Lumens Reclaim $0.080 for Beating the Strong Consolidation Phase?

Stellar Lumens has shown its potential to beat the consolidation phase with the weekly overall gain of 6.41%However, the XLM/BTC pair is...

What to Expect With Consolidated Price Levels Of XLM?

Stellar has failed to show any significant movement in the market for past few daysThere has been no significant change in market...

Stellar Lumens (XLM) Price Analysis: Lumens Price Gradually Runs For $0.070 Price Mark.

XLM finally showed positive momentum in today’s market with an overall gain of 2.00%. The cryptoasset has managed to cross and sustain over the...