The Stellar Foundation has burned 55 Stellar Lumens (XLM) all at once. Previously there were 105 billion Stellar Lumens in circulation, meaning that the total supply of Stellar Lumens has dropped by over half to 50 billion due to this coin burn. Technically, the 55 billion Stellar Lumens that were burned had a value of USD 3.85 billion, although that value could never be realized since there is not enough liquidity to sell all of those coins without crashing the market.

The Stellar Foundation says they did this burn because they believed the amount of Stellar Lumens in their treasury was too large, and that the programs they run to induce adoption could be accomplished with far less Stellar Lumens. The Stellar Foundation still has 30 billion Stellar Lumens at their disposal, as opposed to 85 billion before the burn, with 20 billion Stellar Lumens in public circulation.

The Stellar Lumens market has responded to this news with a 20% rally, from USD 0.07 per Stellar Lumen to over USD 0.08. This rally is likely due to investors believing there will be less selling pressure on the market in the future since the Stellar Foundation has fewer coins to dump.

 

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