The Stellar Development Foundation has burned half of its XML’s tokens supply. Company’s CEO, Denelle Dixon announced the news at Stellar Meridian conference on November 5th 2019.
Stellar is an open source, decentralized protocol that allows its users to make cross-border transactions between cryptocurrencies and fiat money, as well as between any pair of cryptocurrencies.
So, the question is why has Stellar made such a move?
Why did Stellar decide to burn XML?
According to Denelle Dixon, one of the main reasons is that it was very hard to get the coins into the market. And Stellar has faced rough times after the bear market in 2018.
Before burning the coins, around 105 billion XLM were in existence, with 20 billion in circulation. After the burn, Stellar is left with a supply of 50 billion coins.
Five billion XML coins were withdrawn from the company’s operating fund, while an additional 50 billion coins were taken from Stellar’s World and Partner Giveaway Program.
Stellar also stated that the company wants to increase efficiency. This led to repurposing its budget and applying fund strategies that will improve Stellar’s development and marketing.
The news about the XLM coin burn was received well among investors and within the crypto community.
Final words about XLM burn
From now on, the Stellar Foundation will operate with half of its supply. Stellar now has around 30 billion XLM left. The Foundation also stated that it won’t be burning any more coins in the future.
Right after the coin-burning decision, XLM shot up by more than 17% to $0.08. However, this also means that XLM won’t be among the top 10 coins, and it has lost its place in the list of coins with more than $1 billion in market capitalization.
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