Stellar Foundation Burns 55 Billion XLM Tokens for Increased Efficiency | BTCMANAGER
Bitcoin, Blockchain & Cryptocurrency News
In a Medium post published on November 5, 2019, the Stellar Development Foundation (SDF) announced the token burn of more than 55 billion XLM worth $4.7 billion. The announcement says the decision to burn XLM tokens is part of a grander plan undertaken by the SDF to make the organization more lean and efficient in structure as it prepares itself to take forward strides in the cryptospace.
The SDF has burned close to 55 billion XLM digital tokens to shave the total circulating supply of the altcoin by almost 50 percent. The dramatic development was announced by Stellar CEO, Denelle Dixon, who was speaking at the Stellar Meridian conference on November 4.
Per sources close to the matter, the SDF stated that it found the number of allocated XLM tokens for the development of the organization’s operating fund and reserve for giveaway programs “too large.” Notably, the two arms of the organization were allocated XLM 17 billion and 68 billion, respectively.
The official announcement reads in part:
“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 network and community around Stellar are now robust enough to allow SDF to carry less weight,