Economy of Stellar
- The economy of Stellar is based on its native cryptocurrency, Lumens (XLM). The Lumens are used as a bridge between different currencies, allowing for fast and low-cost transactions between different currencies on the network. The Lumens also serve as an anti-spam measure, as transactions on the network require a small fee in Lumens.
- The total supply of Lumens is capped at 50 billion, with about half of the supply currently in circulation. The distribution of Lumens was designed to promote financial inclusion, with a significant portion of the supply being distributed through a series of airdrops and grants.
- In terms of market dynamics, the value of Lumens is determined by supply and demand, like any other cryptocurrency. The value of Lumens can be influenced by a variety of factors, including adoption and use of the network, partnerships and integrations with other companies, and overall market sentiment towards cryptocurrency.
- The Stellar network is designed to be inflationary, with a small amount of Lumens being added to the network each year. This is designed to compensate for lost or damaged Lumens and to ensure the long-term health of the network. The rate of inflation is currently 1% per year and is set to decrease over time.
- Overall, the economy of Stellar is based on its native cryptocurrency, Lumens, and is designed to promote financial inclusion and support fast, low-cost transactions between different currencies on the network.
What is Stellar Blockchain?
Stellar is a decentralized, open-source platform that enables fast, secure, and low-cost cross-border transactions. The Stellar network was founded in 2014 by Jed McCaleb and Joyce Kim, and its mission is to promote financial access and inclusion by enabling individuals and organizations to move money across borders quickly and cheaply.
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