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The Stellar Development Foundation (SDF) is still hard at work in pushing its native cryptocurrency Lumens (XLM) to be the leading standard for payment across the globe. In an attempt to further accelerate its goal and strengthen its foundation moving forward, the Stellar ecosystem recently conducted a gathering consisting of developers and innovators that have the same goal.
The event was held in Mexico City where there were around 200 people who were in attendance. The gathering was used to announce that Stellar will be burning half of its Lumen supply, which amounts to 105 billion.
With the burn, the XLM supply is now 50 billion, 20 billion of which is currently in circulation. So what’s the reason behind the burning?
The need for efficiency
In a nutshell, the announcement explained that the rationale behind the decision was to increase efficiency and to compact the group’s effort into a tightly-knit operation.
Aside from the burning, the SDF also announced it’s going to be canceling the Stellar’s World Giveaway Program and Partner Giveaway Programs, both of which aimed to deliver Lumens to people to increase circulation. However, this isn’t an outright canceling but more of a decreasing the Lumens that are to be distributed in the future.
Before the burning, the Giveaway Programs was just north of 43 billion but has now been shrunk to 6 billion. The Partnership program, on the other hand, got cut down from nearly 25 billion to 12 billion. As for the remaining 11.9 billion, it will be allocated for SDF operations aimed at improving Stellar in the next ten years.
CEO admits uncertainty amidst burning decision
“We’re extremely excited about this renewed focus for SDF and also about the transparency we will bring to these efforts. Each allocation will be set aside in its own account before the end of the year, and we’ll publish the addresses, so the Stellar community can track our progress and see our commitment to this plan,” the announcement read.
CEO Denelle Dixon admitted that she’s uncertain how the crypto market will react to this decision but is confident that this is the right way moving forward, CoinDesk reported. She also said that it’s been quite the effort to distribute Lumens to the public and is one of the reasons why they decided to burn half of the Lumen supply in the first place.
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