Skip to main content

Lumen Inflation

Stellar has a built-in inflation system, where lumens are created and distributed at a rate of 1% each year.
Although transaction fees on the Stellar Network are extremely cheap, thousands of them per second do eventually add up. These Lumens from transaction fees are thrown together into an inflation pool.
Why have an inflation system?
The inflation system is meant to distribute all the transaction fees back to Stellar Lumens holders. It was also put into place to account for lost Lumens (hard drive crashes, theft, etc)
How it works
Every account has an “inflation destination” feature. All this says is, when new lumens are created through inflation, which account should they go to? You get to be part of this vote! But you cannot vote for yourself unless you have 0.05% of the lumens.
Thus, if you join a pool (group of people putting their lumens together) that has .05%, the funds made from inflation can trickle down to you weekly.
There are a few pools we will list in the resources.
Spaceship Icon
Dream it. Do it.

4 Curated Resources

Stellar Logo

Stellar Inflation

Free, Official Documentation
This is how the Stellar organization explains it. It’s for developers so it may be a little technical.
Lumenaut Logo

Lumenaut - Stellar Community Inflation Pool

Free, Inflation Pool
This is a community pool that started on Reddit that has no fees unlike other pools. It is an open source project and run from some really friendly folks who moderate the subreddit.

XLMPool

Free, Inflation Pool
The top pool, and one of the only ones, for XLM currently. Due to it’s almost monopoly it as pretty high fees at 10%. You still get paid though.
Reddit

Introduction to setting up and calculating your weekly inflation payment.

Free, Reddit Post
Reddit post that goes more in-depth on inflation and tells you how to set up inflation payments.

source: NoviceDock

Comments

Post a Comment

Popular posts from this blog

DECENTRALIZED FINANCE; WHAT IS IT? – Part 1

      More than t en years gone down the lane, the block chain industry is yet to disappoint with it ever changing nature. Since the early adoption, the industry has since recorded a slow but progressive changes with the latest being the Decentralized Finance also referred to as Defi. What Decentralized Finance? ‘’DeFi is essentially just conventional financial tools built on a blockchain’’-blocknomi. These were previously built on the Ethereum network, but there is a growing number of players in this space such as Waves and Cosmos. ‘’ They are mostly predicated on open-source protocols or modular frameworks for creating and issuing digital assets and are designed to confer notable advantages of operating on a public blockchain like censorship-resistance and improved access to financial services’’ Example of a growing number of Defi Dapps on the waves platform is the Neutrino token - https://beta.neutrino.at/neutrino/usd-n ...
Post a Comment
Read more

INVESMENT OPTIONS IN THE DIGITAL ASSETS/CRYPTOCURRENCY SPACE - Part 1

•  SMART CONTRACTS; Ethereum, waves, ontology, algorand, cosmos, polkadot, cardano etc. •  TOKENS; xlm, xrp, Bitcoin Cash(BCH), etc •  DEFIS; Terra, Nexo, USDN, DAI, •  Stable Coin and Algorithmic Stable coins; USDT, USDC, USDN, etc. KEY CONSIDERATIONS IN MAKING A CHOICE •  Asset Fundamentals •  Rate of adoption •  Products and services  •  Partnerships •  Incentives TYPES OF INVESTMENT OPTIONS Passive income. Example, DAI, USDN, Waves, Ethereum, Nexo, Terra, Sia etc Buy and Hold aka Hodler: Bitcoin, Ethereum, Litecoin, XLM, XRP etc Trading (Scalping, swing, day and Position Trades). Bitcoin,Litcoin, Ethereum, BCH, etc Loans: Nexo etc TYPES OF INVESMENT – PASSIVE INCOME •  PASSIVE INCOME: Algorithmic stable coins can provide daily in system referred to as Decentralized Finance Eco system (DEFIs). Examples; USDN implement a typical CBN policy for T-bills and Bonds. By implement such monetary policy, investors are presented with a ver...
Post a Comment
Read more