In a shocking turn of events, Stellar Lumens, a crypto-blockchain company focused on global payments and decentralized economies, burned 55 billion of its native token XLM. The move has sparked a big controversy in the community, with crypto influencers lashing it heavy criticisms, while the owners appreciated. The announcement of this polarizing move was made on Monday, during the Stellar Meridian Event.
Out of the total supply 105 billion XLM, 20 billion are in circulation, and after burning over 50%, only 50 billion of the XLM tokens are in supply. Speaking at the event, Stellar CEO Denelle Dixon said,
We didn’t start by wanting to burn. We started by asking, ‘What do we need?’ As much as we wanted to use the lumens that we held, it was very hard to get them into the market.
However, the effect of the price of XLM seemed to have a positive effect, as within a few hours, the token soar by 14% to be valued at $0.8 apiece. Speaking to the reporters after the event, Dixon stated that they didn’t know what the response from the market would be, and the ecosystem too isn’t sure about the reaction. However, she admitted that the project got positive feedback from the community and credited it to the “rightsizing what the foundation has, and the foundation holds.”
Nonetheless, crypto influencers made sarcastic remarks on the move, and so did XLM competitor DigiByte Coin (DGB).
— DigiByte (@DigiByteCoin) November 5, 2019
Alex Kruger, one of the most influential names in the industry made took a satirical dig at Stellar in his tweet
Mr A: our token is dying, what to do!!??
Mr B: why, let's destroy half the supply and generate some buzz. Better own 30 billion tokens worth something, than 85 billion worth nothing. https://t.co/fL2MZTxrF8
— Alex Krüger (@krugermacro) November 5, 2019
On the other hand, popular crypto trader, trade analyst and chief of Venture Coinist, Luke Martin, said that if XLM can destroy half of the supply, they could also double it.