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Alex Dovbnya📰 NewsXLM is on a tear after the Stellar Development Foundation burned more than half of the token's circulating supply
The price of Stellar (XLM) has exploaded by more than 25 percent after half of its supply got destroyed. At the time of writing, XLM is changing hands at $0.081.Â
The crypto project, which was co-founded by former Ripple CTO Jed McCaleb, has burned more than 50 percent of XLM tokens by sending them to an address without signers. As a result, the total circulating supply has dwarfed to 50 bln tokens (as opposed to 105 bln tokens before the burn took place). Â
In its Medium blog post, the Stellar Development Foundation (SDF) explains that it destroyed the lion's share of tokens that were reserved giveaway and partnership programs.
The SDF claims that there will no be other token burns since the number of lumens in circulation now aligns with their mission.
We’re extremely excited about this renewed focus for SDF and also about the transparency we will bring to these efforts.   Â
With 20 bln XLM out in the world, the SDF has 30 bln tokens at its disposal. The foundation explains that it will spend 12 billion on direct development of the network. It also has two billion for 'ecosystem support' and 10 billion for investing in Stellar use-cases. Â
Given that giveaways have proven to be "the least effective program for Stellar," it will only keep six billion lumens.  Â