Stellar's Foundation Just Destroyed Half the Supply of Its Lumens Cryptocurrency

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MEXICO CITY - The Stellar Development Foundation has burned 55 billion of its XLM tokens, over half the cryptocurrency's supply, CEO Denelle Dixon announced from the stage of the Stellar Meridian conference Monday.

Previously, there had been 105 billion XLM in existence, with 20 billion in circulation.

With this burn, the supply has shrunk to 50 billion.

In the hour following the announcement, XLM's price jumped about 14 percent, to $0.08, according to data provider Nomics.

The foundation now controls 30 billion XLM, divided into several buckets.

It has 12 billion XLM in the direct development fund, to support the organization.

In "Ecosystem support" it has two billion XLM remaining.

Stellar has 10 billion XLM set aside to make investments.

Finally, under user acquisition, the foundation has six billion XLM. The supply of XLM is fixed now because the community of token holders voted to discontinue inflation on Oct. 28.

"SDF will not burn any additional lumens," Stellar said in a blog post.

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