{"id":242074,"date":"2019-11-05T03:54:25","date_gmt":"2019-11-05T08:54:25","guid":{"rendered":"http:\/\/insidebitcoins.com\/?p=242074"},"modified":"2019-11-05T03:55:04","modified_gmt":"2019-11-05T08:55:04","slug":"stellar-burns-55-billion-lumens-to-properly-scale-itself","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/stellar-burns-55-billion-lumens-to-properly-scale-itself","title":{"rendered":"Stellar Burns 55 Billion Lumens To Properly Scale Itself"},"content":{"rendered":"

Denelle Dixon, CEO of the Stellar Development Foundation, announced<\/a> at the Stellar meridian Conference on Monday that 55 billion XLM tokens would be burned in order to facilitate proper growth of the Lumen cryptocurrency.<\/p>\n

Burning Away Supply<\/h2>\n

Before the burn<\/a>, there was 105 billion XLM in existence, but only 20 billion was in circulation throughout the ecosystem. With the new burn happening, the supply will shrink to less than half the original size and only allowing a maximum of 50 billion XLM in existence.<\/p>\n

Dixon gave a statement about the matter. She explained that they didn\u2019t want to burn Lumens at the start. However, they asked what would they need to do in order to further Stellar\u2019s growth. They realized that the lumens they held were a lot, but putting it in the market was a complicated process.<\/p>\n

\"Stellar's<\/a><\/p>\n

The Proper Number Crunch<\/h2>\n

The organization concluded that a smarter plan was to project how much lumens could be used within a span of ten years. After they crunched the numbers, they would calibrate the number of lumens to that calculation. Concerning this, Dixon noted that planning through the use of some arbitrary number would not serve any purpose.<\/p>\n

The attendees joining the announcement, around 200 in total, took to the news with good sentiments. Many of these attendees likely owned the token and they saw a decrease of supply as something that should be celebrated. One of those attending actually stood off their seats and asked the others to give a round of applause for Dixon, something they rather quickly obliged.<\/p>\n

\n

If $XLM<\/a> can cut supply in half, they could also double it.<\/p>\n

Alts can be great trading opportunities. <\/p>\n

But it\u2019s hard to justify holding many long-term with no ownership rights & at the mercy of a small centralized team.<\/p>\n

— Luke Martin (@VentureCoinist) November 5, 2019<\/a><\/p><\/blockquote>\n