MEXICO – The Stellar Development Foundation burned 55 billion of its XLM tokens, more than half of the cryptocurrency supply, said Monday to Denell Dixon, CEO of the Stellar Meridian conference.
Previously, there were 105 billion XLM, of which 20 billion circulating. With this burn, the supply fell to 50 billion.
"We did not start by wanting to burn. We started by asking, "What do we need?" Said Dixon in front of the room, which has about 200 participants. "Even if we wanted to use the lights we had, it was very difficult to get them to the market."
The organization decided it was best to predict how much it could actually use over a 10-year period and calibrate to that number. "Deriving a plan of arbitrary numbers is useless," Dixon said.
The news was warmly received by the crowd, many of whom probably own the chip. A participant in the packed house stood up and asked everyone to give a salvo of applause to Dixon, what they did.
In the hour following the announcement, the price of XLM jumped about 14% to $ 0.08, according to the data provider Nomics.
Dixon told CoinDesk she could not anticipate the reaction of the cryptography market by saying:
"I do not know, I really have no idea what the market is going to do, and from my point of view, that's what the ecosystem thinks." The ecosystem has received a lot of positive feedback because we are redefining what the foundation owns and holds. "
The foundation now controls 30 billion XLM, divided into several compartments. It has 12 billion XLM in the direct development fund (formerly called "operations"), to support the organization.
In "ecosystem support", there are two billion XLM (one billion for monetary support and one billion for infrastructure subsidies).
Stellar has 10 billion XLM dedicated to investments (with two billion XLM for new products and eight billion XLM in its corporate fund).
Finally, in connection with the acquisition of users, the foundation has six billion XLM (two billion for stellar marketing and four billion for in-app promotions).
The XLM bid is now set as the chip-holder community has decided to end inflation on October 28th.
"SDF will not burn extra lumens," Stellar said in a blog post.
Denelle Dixon and Jed McCaleb, founder of Stellar, on stage at Stellar Meridian. Photo by Brady Dale for CoinDesk.