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On Nov. 4th, the Stellar Development Foundation (SDF) shook the entire crypto community by announcing the decision to burn 55 billion Lumens, equivalent to over $4 billion. Out of that amount, 50 billion tokens were taken from the 68 billion XLM that the Foundation held as part of a fund dedicated to fostering the adoption of this cryptocurrency. The other 5 billion were part of SDF’s operation fund. The announcement read:
“This reduction isn’t in any way a retreat from our mission. It’s an acknowledgment that we owe it to the ecosystem, to the network, and to ourselves, to be as efficient as possible in our work.”
The tokens were sent to a Stellar account with “no signers,” which made it possible to discard them permanently. Despite this massive number of Lumens being burned, SDF is confident that the remaining funds will be enough to influence the growth of the network. Now, 12 billion XLM is left for the Foundation’s operations, 6 billion for giveaways,