Last updated: November 7, 2017 edit

What is Stellar Lumens?

Industry Money remittance & real-time exchange network
Similar to Ripple

Stellar is an open-source, decentralized network for exchanging money and other assets, backed by a non-profit foundation, the Stellar Development Foundation. The native asset of Stellar is the Lumen.

Stellar aims to provide low-cost financial services to a broad and global base of individuals. To that end, 95% of the initial supply is slated to be given away by the foundation to individuals and non-profits.

Originally a fork of the Ripple project by one of the Ripple founders, key differences between the two platforms lie in the underlying philosophy, the projects’ governance models, and the primary users of the platform.”

About XLM

Genesis Date 30 July 2014
Type N/A
Protocol N/A
Available supply XLM
Total supply XLM

Purpose of the token

Lumens (XLM) play a small anti-spam role on the Stellar network. Each transaction has a minor fee of 0.00001 lumens associated with it. This fee prevents users with malicious intentions from flooding the network (otherwise known as a Denial of Service attack). Therefore, Lumens work as a security token, mitigating DoS attacks that attempt to generate large numbers of transactions or consume large amounts of space in the ledger.

Another such security measure of the Stellar network is that all accounts are acquired to hold a minimum balance of 20 lumens. This requirement ensures that accounts are authentic, which helps the network maintain a seamless flow of transactions.

Secondly, lumens may facilitate multi-currency transactions. Lumens sometimes facilitate trades between pairs of currencies between which there is not a large direct market, acting as a bridge. This function is possible when there is a liquid market between the lumen and each currency involved.

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