What Stellar Lumens (XLM)
Stellar is a blockchain established in 2014 and maintained by the Stellar Development Foundation. The network concentrates on improving cross-border payments and remittances.
It has its own unique consensus mechanism known as the Stellar Consensus Protocol, which differs from both Proof of Work and Proof of Stake. Nodes that validate transactions operate on quorum slices to coordinate their agreement.
Unlike other blockchains, Stellar’s native token, Lumens (XLM), isn’t awarded or mined. Instead, an initial supply of 100 billion XLM was minted with an annual 1% inflation rate. In 2019, the total supply of XLM was reduced, and the inflation mechanism was removed via a governance vote. There’s now roughly a maximum of 50 million XLM in existence. XLM are used to pay for transactions on the Stellar network and as a bridge for international payments.
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