Stellar Development Foundation burned 55 billion XLM coins
- The Stellar Development Foundation burned 55 million XLM tokens several hours ago.
- The amount equals to around USD 4.7 billion, according to the coin's price at the time of the burning.
- The tokens were a portion of an even larger amount of 85 billion XLM, that were meant to be used for SDF operations.
According to the SDF’s (Stellar Development Foundation’s) recent announcement, around 55 billion XLM coins were just burned as part of the process meant to make the project more efficient. The announcement came yesterday, November 4th, and Stellar announced it on its Medium page.
The amount that the Foundation had burned equals to around $4.7 billion, with the coin’s price sitting at $0.085. The reaction to the announcement was rather positive, as Stellar’s price surged by around 25%. According to the data from CoinMarketCap at the time of writing, the XLM price has increased by 17,88% in the last 24 hours, indicating that the coin’s growth is slowing down.
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However, the sudden burst of the coin’s price, as well as market cap, allowed XLM to surge past TRON (TRX) and retake the 10th spot on the list of largest coins by market cap. Meanwhile, TRX was pushed back to the 11th spot, once again leaving the list completely.
The blog post also noted that there are now exactly 50 billion XLM in existence, including the circulating supply, as well as the tokens that were excluded from the burning process.
As mentioned, SDF did not burn tokens without reason. The decision was made to make the system more efficient, as they estimate that they can do the work they were created to do with fewer tokens at their disposal. Giveaways and airdrops did not provide the effect that the SDF was initially hoping for, which is why they have decided to reduce the number of coins in existence.
Meanwhile, their 12 billion XLM will be put into a new program for direct development and advocacy for Stellar. Also, the Foundation expects to double its staff before the year ends and reach around 120 employees in total.
Stellar also recently removed its inflation feature in a September upgrade, stating that the tool was not useful for the network’s participants.