The price of Stellar Lumens (XLM) surged over 20% in late Monday trading after the Stellar Development Foundation (SDF) announced that it will be burning half of the total XLM supply.
SDF's Next Steps
— Stellar @ Meridian (@StellarOrg) November 4, 2019
According to the announcement, the SDF has burned 50 billion XLM, worth roughly $4.2 billion at current prices.
“All told, there are now exactly 50 billion lumens in existence. Slightly under 30 billion of those are still administered by SDF,” states the team. “That pool is a resource for the whole network. We view these as ‘Stellar’s lumens’, not so much owned by the Foundation as held by us temporarily to use for initiatives that support Stellar and the ecosystem.”
The remaining funds will go towards direct network development, ecosystem support via grants and direct product investments.
As a result of the news, XLM is currently up 19.5% to $0.08311, giving the altcoin a $1.67 billion market cap. Investors looking to trade XLM commission-free can earn $25 in free BTC by signing up for the Voyager app through this link.
More: Stellar’s Announcement
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.