To reshuffle its development strategy, the Stellar Development Foundation (SDF), has burned around 55 billion Lumen tokens. As per a Medium post, the SDF drastically reduced the token supply of Lumen tokens from 105 billion to around 50 billion. The burnt tokens were worth $4.7 billion USD. The burnt tokens are from the foundation’s supply, which the team claims to have been holding. As per the post, Stellar plans to dedicate the remaining tokens to what Stellar needs the most. The foundation had categorized tokens.
- 20 billion out in the world
- 17 billion in SDF’s operating fund
- 68 billion remained earmarked for giveaway programs administered by SDF
The burning took place in phases. Before the announcement, about 5 billion lumens were burnt from the firm’s operating fund. Another 50 billion were burnt from the tokens set aside for the Giveaway program. Besides this burning, Stellar also ended it’s Stellar’s World Giveaway Program and Partner Giveaway programs.
CEO Denelle Dixon tweeted regarding this. “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 we held, it was very hard to get them into the market.”
The organization decided instead it was better to project how much it could use over a 10-year period and calibrate to that number. “To derive a plan from an arbitrary number serves no purpose,” Dixon said.
Lumen Prices Skyrocketed
As expected, Stellar token, Lumen prices increased drastically in the last 24 hrs. The lumen price chart saw a 25% hike after the November 4, 2019 announcement. Stellar lumen price shows a lot of positive signs above the $0.0650 support against the US dollar. Currently, XLM is trading at $0.08 against USD. However, earlier today, the price had reached $0.084 USD. The price is the highest recorded in the last 3 months.
In total now, there are now exactly 50 billion XLM in existence. Slightly fewer than 30 billion of those are still administered by SDF, while the remaining 20 billion crypto tokens are circulating.
By analyzing the current performance of lumen price increasing by 25%, we can observe that XLM might get over 120%. Based on calculations, XLM might go for $1.19 by the end of 2025.
However, few enthusiasts believe that XLM will get above this value, skyrocketing with the increased use of Stellar as one of the fastest currencies in the crypto market.