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Welcome to MAXBIT support

Stellar Lumens (XLM)

Maxbit Support
  • Updated

What is Stellar Lumens (XLM)?

Stellar Lumens (XLM).png

  1. Native Blockchain:
    • XLM is the native cryptocurrency of the Stellar network, a distributed ledger platform designed to facilitate cross-border transactions.
  2. Consensus Protocol:
    • Stellar uses the Stellar Consensus Protocol (SCP), a Federated Byzantine Agreement system. Unlike PoW or PoS, SCP provides for decentralized control, low latency, and flexible trust, ensuring efficient and fast transactions.
  3. Trilemma (Security, Speed, Scalability):
    • Security: The Stellar Consensus Protocol ensures that the network reaches consensus without relying on a closed system to accurately record financial transactions. The open membership ensures robust security.
    • Speed: Transactions on the Stellar network confirm in a few seconds, ensuring rapid settlements.
    • Scalability: Stellar can handle thousands of transactions per second, catering to the demands of a high-performance financial infrastructure.
  4. Founder / Date Founded:
    • Stellar was co-founded by Jed McCaleb and Joyce Kim. It was officially launched in July 2014.
  5. Objective / Use Case:
    • Stellar aims to connect financial institutions, payment systems, and people. By integrating into the Stellar network, institutions can offer low-cost, fast, and transparent cross-border transactions. This is especially beneficial for remittances and underbanked regions.
  6. Total supply / Limit or Unlimited:
    • The original total supply of XLM was 100 billion. However, in November 2019, the Stellar Development Foundation reduced the total supply by more than half, burning over 55 billion tokens. As of that action, the total supply is now closer to 50 billion XLM, with no new tokens to be minted.
  7. Supply Deflation:
    • Stellar doesn't have a deflationary model like some other cryptocurrencies. However, small transaction fees (0.00001 XLM) collected are added to an inflation pool. This pool was previously distributed to accounts that received enough votes from the community, leading to a slight inflationary model. But in October 2019, the network voted to end this inflation mechanism.

          This overview should give beginners a fundamental understanding of Stellar Lumens and its distinguishing features. As always in the crypto space, continuous research and staying updated with current developments is vital.

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