Stellar distributes XLM to holders of its cryptocurrency as reward

Spread the love

Stellar is in the middle of a reward plan for those who hold XLM, the network’s native cryptocurrency, which is one of the largest in market capitalization.

The Community Staking Competition is a new algorithm implemented in the Stellar blockchain that, together with the internal inflation mechanism of the network, makes payments according to the time that holders hold their lumens (XLR), the network’s native cryptocurrency.

In an official statement, Stellar detailed that the competition started on January 11 and will last for 30 days (ends on February 11). At that time, holders can claim up to 25% more XLM than their registered balance. Depending on how long the XLMs have been carrying, this will be the percentage calculated by Stellar to grant the reward, which is delivered automatically, they state.

Totally, 6,000 million XLM were allocated to the program, from the Stellar Development Foundation inflation accounts. If the XLM reserve is not used during the 30 days of the program, they will be returned to the Foundation’s accounts.

The amount is currently equivalent to $ 1,740, with the XLM price at $ 0.29 per unit. The crypto asset has had a substantial price surge in recent days.

The initiative emerged in 2018, when community members proposed to the Stellar Foundation Board to implement a method to reward new and old investors in the platform, they said in the statement.

Users can participate in this program through the Stellar account viewer, and they can connect their wallets to view their funds.

Stellar has been driven for a couple of months by announcements of the launch of different national currencies on its platform. One of the cases was that of Ukraine, which after many years of investigation, agreed with the Stellar Development Foundation to issue a central bank digital currency (CBDC) on this network.

Similarly, said foundation made an investment of USD 3 million in the Settle Network, a network of international transfers and payments in Latin America, with a view to strengthening Stellar’s use cases in this type of financial services. Both organizations also issued stablecoins or stablecoins for the Argentine peso and the Brazilian real, called ARST and BRLT, respectively.

Leave a Reply

Your email address will not be published.