The Stellar Development Foundation burned 55 billion of its XLM tokens, more than half of the supply of the cryptocurrency, CEO Denelle Dixon announced on Monday's Stellar Meridian conference stage.
105 billion XLM had existed previously, with 20 billion in circulation. The supply has shrunk to 50 billion with this burn.
"We didn't want to start burning. We began by asking, ' What are we needing? Dixon told about 200 attendees in the room." It was very difficult to get them into the market as much as we wanted to use the lumens we held.
Instead, the organization decided it was better to project how much it could actually use and calibrate to that number over a 10-year period. "There is no point in deriving a plan from an arbitrary number," Dixon said.
The crowd warmly welcomed the news, many of whom probably own the token. One participant in the packed room stood up and asked everyone to applaud Dixon, which they did.
According to data provider Nomics, the price of XLM jumped about 14 percent to $0.08 in the hour after the announcement.
Read more at: https://doggbitcoin.com/stellar/stellars-foundation-has-just-destroyed-half-of-its-lumens-cryptocurrency-supply/