Stellar Distribution

During the creation of the Stellar Network, 100 billion Lumens or XLM were generated as was stated in the protocol so let’s see the Stellar distribution more thorough. From the total lumens coins, 5 percent was used for the funding of operations while SDF (Stellar Development Foundation) was entrusted with distributing the rest of the 95 percent for free.

The Stellar Development Foundation is the manager for distribution which was overseen by the expansion board. The Stellar distribution was made as such:

–          50% were allocated for distribution via the Direct-sign-up program

–          25% was allocated for distribution via the partnership program

–          20% was allocated for distribution via the Bitcoin Program

–          5% were allocated to fund operational costs

In contrast with other altcoins, the XLM team intermittently releases more tokens to the general public without cost. One of the bigger goals of the platform as a non-profit institution is to assist in the inclusion of more individuals in the low-cost financial services so these giveaways will attract more individuals to the network and will encourage companies to make their own designs for what services they require.

The Stellar network enables people to use the blockchain to create solutions for the problems and the higher number of users in the Stellar Network will provide them with a better experience. It is possible to get XLM for free but people will still pay to get it in case they missed out on the giveaway or in order to support the project. In the next ten years, once the entire supply of Steller distribution tokens gets distributed, people will have to buy XLM via exchanges.

Stellar keeps generating more XLM which makes it an ‘’inflationary currency.’’ The goal behind this idea was that the people will be interested to spend it rather than keeping it as a store of value. The project gives extra currency to entities that send and receive XLM which is a concept that will allow the individual to regard it as a currency and not only as an investment. The Stellar team occasionally releases free tokens to the public just to include individuals in the digital economy.

The in-dapp Stellar distribution pool is also another feature of Stellar’s original airdrop program. The XLM in this account will fund user acquisition for stellar-built apps and services that have shown traction in the marketplace. The distribution could be via airdrops as matching funds, as on and off-set for fees incurred by the users or by the project or in other creative ways. The goal of this fund is to place more lumens into the hands of the true users through the apps that they already use. SDF will source its own candidates as well and they will want to know whether the project is gaining traction, does the project have a connection to SDF, will the increased success positively impact Stellar.

The funds from the Marketing support will provide improved marketing, PR and communications for the entire network and for projects that are built on Stellar. The Stellar Foundation could use third-parties or may even choose to do marketing themselves. The project will be considered for marketing support by using other criteria that will be shown in the other programs.