The Stellar Development Foundation (SDF) has burned more than 50 percent of the total XLM supply, amounting to over 55 billion XLM coins. The XLM tokens burnt so far are worth more than $4.4 billion. The activity was occasioned by the need for the foundation to try to reorganize its development strategy.
The Stellar Development Foundation is a non-profit organization that supports the expansion of the Stellar blockchain network. On Monday this week, it sent out a press release indicating that there are now fifty billion XLMs in existence. Prior to the burn, there had been more than 105 billion Lumens in circulation.
Dedication of the Remaining Funds
In its statement, the foundation noted that it intends to dedicate a large portion of the funds in its possession towards the growth of its network. It would also set aside funds for use in supporting network partnerships, as well as fostering use cases.
A portion of the statement by the foundation reads:
“8 billion Lumens will be converted into the Stellar Enterprise Fund. The money in this fund will then be used in acquiring or investing in new business opportunities. These are businesses and opportunities that can thrive and help the Stellar ecosystem to continue growing.”
The post further mentioned that the Stellar Development Foundation had chosen to sunset a number of giveaway programs. In the process, it had managed to burn 50 billion Lumens of the initial 68 billion Lumens that had been set aside to aid in achieving this particular cause.
SDF Keen on Airdrops
Even though the foundation has so far intended to burn through the Lumens, it is worth pointing out that this does not mean that it has decided to move away from airdrops. It still intends to allocate around four billion tokens that are to be distributed through partnership agreements with various applications.
The applications that are to be considered are those that have demonstrated good and fruitful market traction. In September, the foundation reported that there were plans to airdrop 2 million tokens. The airdrop would occur as a partnership with Keybase, a message-based application.
In November 2018, SDF had also entered into a partnership agreement with a blockchain crypto wallet that would see it airdrop XLMs worth more than $125 million.
Featured image: thecurrencyanalytics.com
