Stellar Foundation burn 50% of total XLM tokens
The Stellar Foundation announced last night that they had burned a total of 55 billion XLM tokens - approximately 50% of all tokens in existence. 5 billion were burnt from the operating fund in a move that was explained as:
"This reduction isn’t in any way a retreat from our mission. It’s an acknowledgement that we owe it to the ecosystem, to the network, and to ourselves, to be as efficient as possible in our work."
While this can be understood by the explanation, what does come as huge surprise is the further burning of 50 billion tokens. This comes as a result of the termination of "Stellar’s World Giveaway Program (for individual airdrops) and our Partner Giveaway programs". 50 billion XLM tokens of the total 68 billion lumens in those programs were burned. The Foundation added that they now believe the amount of Lumens in circulation now "align better" with their set out mission and hence no further burning will occur.
With 50 billion XLM tokens now left in the ecosystem, the question that the majority of the crypto world were asking was "why such a significant burn?" Stellar have answered this by stating "we should only keep what we’re confident we can actually use." The 50 billion tokens left are what Stellar deem an appropriate number of tokens that will be used within the next 10 years - only time will tell whether they are correct.
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