The CEO of Stellar Development Foundation announced on the of the Stellar Meridian in Mexico City that it had burned about 55 billion of the XLM tokens which is more than half of the cryptocurrency supply. The conference was held on Monday.
There had been an existing 105 billion XLM with a circulation of 20 billion. The burn saw the supply shrinking to 50 billion.
“We didn’t start by wanting to burn. We started by asking, ‘What do we need?’” Dixon told the room of roughly 200 attendees. “As much as we wanted to use the lumens that we held, it was very hard to get them into the market.”
This result made the organization to decide that it was better to have 10-year projection of how much it could use and calibrate to the number. “To derive a plan from an arbitrary number serves no purpose,” said Dixon.
The crowd accepted the news warmly, most of them who own the token. In fact, there was one participant who stood up and requested if they could give Dixon a round of applause and they did.
Dixon talked to CoinDesk and told them that she couldn’t tell the reaction of the crypto market.
This is what she said:
“I don’t know. I really just don’t have a sense at all of what the market response is. From my standpoint, it’s how the ecosystem feels about it. We got a lot of positive response from the ecosystem because we are rightsizing what the foundation has and the foundation holds.”
There is now approximately 30 billion XLM which is controlled by the foundation. But this is divided into several buckets. The direct development, (formerly known as “Operations”) has 12 billion XLM and this is to support the organization.
The “ecosystem support” has 2 billion XLM; 1 billion for currency support and the other 1 billion for infrastructure grants.
There is 10 billion XLM set aside by the Stellar foundation for making investments; 2 billion XLM are for new products while the 8 billion XLM is for its enterprise fund.
The foundation has 6 billion XLM under user acquisition. 2 billion is for marketing stellar and the other 4 billion is specifically for in-app purchases.
XLM supply is now fixed because the token holders in the community made a vote to discontinue inflation on the 28th of October.
“SDF will not burn any additional lumens,” this was said by Stellar in a blog post.