Stellar Dev Foundation Burn 55 Billion XLM

Stellar Dev Foundation Burn 55 Billion XLM

The Stellar Development Foundation (SDF) announced at their Mexico City conference that 55 billion lumens (XLM) tokens – worth over $4 billion at current prices – have been burnt as part of a restructuring of the Foundation’s aims. Denelle Dixon, the SDF CEO, explained that the action was taken to establish an optimum level of tokens that could actually be used rather than carry a bloated arbitrary number that served little purpose.

Dixon stated that the Stellar network was now so robust that the SDF could carry less weight in resources (XLM) yet still achieve it’s goal of “…moving Stellar to adoption as a payment standard.”

Non-profit for Network Adoption

Founded in 2014, the Stellar Development Foundation is a non-profit organisation designed to bolster the open-source Stellar Network by maintaining the codebase, connecting with regulators and institutions, as well as supporting the various technical and business communities using Stellar.

The SDF token burn leaves 50 billion XLM in existence with almost 30 billion of those under the administration of the Foundation.

Source: Stellar Development Foundation

As part of the restructuring, the Foundation will also halt the World Giveaway and Partner Giveaway programs that have previously involved substantial airdrops of tokens and which some observers had already identified as having limited benefit to the overall ecosystem.

Dixon reiterated that “We believe the number of lumens we hold now aligns better with our mission” and that the “SDF will not burn any additional lumens.”

The action in removing over half of the total token supply had an immediate impact on the XLM price which surged almost 20% higher on the news.

Responding to questions at yesterday’s conference regarding the adoption of an open global financial system, the SDF CEO contemplated that “I do feel like we are on the precipice of success…”