Stellar was founded by Jed McCaleb, the creator of Mt.Gox and co-founder of Ripple, who later established the Stellar Development Foundation (SDF) to support ecosystem growth. Unlike many blockchain projects, Stellar operates as a non-profit organization, focusing on improving global financial accessibility.
Key Features of Stellar (XLM)
1. Mission and Vision
Stellar aims to bridge fiat and cryptocurrencies, enhancing liquidity and reducing inefficiencies in cross-border transactions—similar to Ripple's goals but with an open-market approach. Its decentralized network facilitates low-cost, high-speed transfers.
2. Token Distribution
XLM was not launched via an ICO. Instead:
95% of tokens were airdropped:
- 50% to individual users via campaigns.
- 25% to governments, enterprises, and partners.
- 19% to Bitcoin holders.
- 1% to Ripple (XRP) holders.
- 5% retained by SDF for development.
3. Supply Adjustment
Initially set at 100 billion XLM, the total supply was reduced to 50 billion in 2019 after SDF burned half the tokens to refocus on ecosystem development.
Major Partnerships and Use Cases
👉 Discover how Stellar powers global financial solutions
1. IBM World Wire
Stellar collaborates with IBM on World Wire, a cross-border payment network leveraging Stellar’s low fees and P2P capabilities for real-time settlements.
2. Government Adoption
- Ukraine’s Digital Transformation: SDF signed an MoU in 2021 to develop a digital asset ecosystem, including potential CBDC (Central Bank Digital Currency) initiatives.
- Velo Protocol: Acquired Interstellar, a Stellar-based payment team, to expand financial services in Southeast Asia (e.g., trade financing, remittances).
FAQs About Stellar (XLM)
1. How does Stellar differ from Ripple?
While both target cross-border payments, Stellar is open-source and non-profit, whereas Ripple focuses on institutional partnerships.
2. Is XLM inflationary?
No. The fixed supply of 50 billion XLM ensures no further inflation after the 2019 burn.
3. Where can I use XLM?
XLM is accepted for remittances, micropayments, and as a bridge asset in decentralized exchanges (DEXs).
4. What’s Stellar’s transaction speed?
Stellar processes 1,000–5,000 TPS with settlements in 3–5 seconds.
Why Stellar Matters
Stellar’s low-cost, scalable infrastructure makes it a leader in financial inclusion. With partnerships like IBM and Velo, XLM continues to drive real-world crypto adoption.