Stellar (STR/XLM)

Stellar Lumens were created by Jed McCaleb, an American programmer who also created Ripple before leaving as he felt Ripple was becoming too centralised. McCaleb also founded Mt Gox as he felt bitcoin needed an exchange, but sold this on before the Mt Gox collapse.

Stellar (STR/XLM)

Official Website: https://www.stellar.org/

Key Facts

  • Stellar is an open-source protocol for exchanging money.
  • Lumens are the native asset of the Stellar network, built into the ledger as a unit of value.
  • Lumens contribute toward the moving of money around the world quickly and securely.
  • Lumens were originally called stellars and the network launched with a 100 billion stellars.
  • Lumens offer two purposes: as anti-spam to prevent malicious actors flooding the network (a DOS attack) and secondly to facilitate multi-currency transactions.
  • One lumen will cover 100,000 transactions on the Stellar network, making the network low cost.
  • New lumens are created to the network at rate of 1% per annum.
  • The Stellar network collects a base fee for each operation in a transaction, which is added to the inflation pool.
  • Anyone who hold lumens can vote where the funds in this pool go.
  • The Stellar.org mandate reserves 5% of the original lumens to support network operations.
  • Periodically, portions of these reserves are offered in lumen auctions.
  • 95% of lumens created will be given away to expand the reach of the network and achieve a more inclusive digital economy.

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