What is Stellar?
Stellar (XLM) is a blockchain-based distributed ledger network that aims to connect banks, payment systems, and individuals. At the core of the Stellar network lies XLM, the protocol token that facilitates transactions and promotes efficient asset trading globally. Stellar serves as an open platform enabling users to move and store money seamlessly, with XLM acting as a bridge currency that reduces the costs associated with international asset trading.
Key Objectives of Stellar
A primary goal of Stellar is to simplify and reduce the costs of cross-border transactions. Traditionally, these transactions incur significant fees, whether dealing with cryptocurrency or fiat currency. Stellar stands out by charging a minimal fee of just 0.00001 XLM for each transaction, making it an economical choice for users around the world.
Tokenomics of Stellar (XLM)
Unlike many other cryptocurrencies, Lumens (XLM) cannot be mined. When the Stellar network was launched in 2014, a total supply of 100 billion XLM was created, which was later reduced to 50 billion. To maintain price stability, the Stellar Development Foundation implemented a controlled inflation strategy, limiting the annual increase of circulating XLM to 1%. This ensures that inflation remains tightly regulated, providing predictability for investors and users alike.
The Vision Behind Stellar
Stellar was established with a vision to address the needs of the world’s unbanked population. By leveraging the Stellar network, individuals can create mobile wallets and banking tools, effectively providing financial services without depending on traditional banking institutions. This mission to empower underserved communities is a cornerstone of Stellar’s broader objectives.
Features of the Stellar Network
- Low-Cost Transactions: A transaction fee of just 0.00001 XLM makes Stellar an attractive option for users looking to make affordable international transfers.
- Accessibility: The Stellar network is designed to be accessible to all, especially those without access to conventional banking systems.
- Security: Utilizing Blockchain technology ensures that transactions are secure and transparent.
- Multi-Currency Transfers: Stellar facilitates the easy exchange of numerous currencies, making it simple for users to send and receive payments globally.
Relevant Links and Resources
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