Stellar Development Foundation, the foundation underlying the Stellar / XLM project, claimed to have deleted 55 billion XLM tokens, or more than half of the stock of its cryptocurrency.
The announcement was made by CEO Denelle Dixon, who confirmed the transaction which, in substance, considerably reduces the amount of XLM in existence: if previously 105 billion XLM existed, with 20 billions of these in circulation, with this intervention the overall offer has been reduced to 50 billion.
However, the decision was not "traumatic" for the project, with Dixon specifying how the foundation chose to update the token projection based on what it could actually use over a period of 10 years, and calibrate it accordingly based on that number.
The news was well received, so much so that in the hour following the announcement, the XLM price rose by around 14 per cent, to 0,08 dollars. A reassurance also for Dixon, who has publicly declared to not being able to predict how the cryptocurrency market would react.
"I don't know, I have no idea what the market response is "- stated Dixon, specifying that the foundation now controls approximately 30 billion XLMs, of which 12 billion in the direct development fund, useful to support the organization, other 2 billion XLMs in ecosystem support (1 billion for currency support and 1 billion for infrastructure grants), and 10 billion XLMs to make investments (with 2 billion XLMs for new products and 8 billion XLMs in its company fund). Finally, 6 billion XLMs are available (2 billion for Stellar marketing and 4 billion for in-app promotions).