What is XLM

1. Programme Name

1. What Is Stellar?
Stellar is an open-source, decentralized protocol for digital currency and fiat transfers designed to build an open and inclusive global financial system, especially for the unbanked. Its native cryptocurrency, XLM (Stellar Lumens), was launched in 2014 and designed to facilitate fast, low-cost, and borderless payments and asset tokenization.

2. How Does Stellar Work?
Stellar uses the unique Stellar Consensus Protocol (SCP), which does not rely on mining or Proof of Work, but instead reaches consensus through a trust-based network of validators. This allows transactions to finalize in 3-5 seconds at a cost of just around 0.00001 XLM. It supports smart contracts, token issuance, and a built-in decentralized exchange (DEX), allowing for fast asset swaps and micro-payments. Decentralized and flexible, the network is well-suited for use cases like cross-border remittances, asset tokenization, and mobile banking.

3. Who Founded Stellar?
Stellar was co-founded in 2014 by Jed McCaleb and Joyce Kim. Jed McCaleb is a well-known programmer and entrepreneur. He founded the Mt. Gox exchange and co-founded Ripple Labs. Joyce Kim is a former lawyer and venture capitalist. The two co-founded the Stellar Development Foundation (SDF) and are dedicated to promoting the growth and development of the Stellar protocol to create a fair, accessible financial system for everyone.

4. Stellar Tokenomics
Stellar had an initial total supply of 100 billion XLM, with an annual inflation of 1%. However, this inflation mechanism was permanently disabled by a community vote in 2019, and 55 billion tokens were burned, reducing the total XLM supply to approximately 50 billion. Of these, 31 billion are in circulation. XLM is mainly used for paying transaction fees, maintaining minimum account balances, and serving as a bridge currency to facilitate asset conversions.

5. Timeline of Key Milestones
2014, Jed McCaleb and Joyce Kim co-founded Stellar with support from the nonprofit Stellar Development Foundation (SDF).
In 2015, the unique Stellar Consensus Protocol (SCP) was launched, marking a major departure from the Ripple protocol.
From 2017 to 2018, Stellar became an ICO platform and attracted numerous projects. It formed a landmark partnership with IBM to facilitate cross-border banking applications and saw significant growth in XLM value and network adoption rate.
In 2019, the inflation mechanism was disabled, and 55 billion XLM were burned to optimize the tokenomics.
In 2020, the USDC stablecoin was integrated to expand Stellar's capabilities in global financial services.
In January 2021, the Ukrainian government selected the Stellar blockchain network as the platform for developing its national digital currency (CBDC).
In early 2024, Stellar launched the Soroban smart contract platform on its mainnet. The Stellar Foundation also rolled out a $100 million ecosystem incentive program to encourage developers to build applications for the platform.

2. Project Introduction

Stellar network is a free, open-source network that connects diverse financial systems and lets anyone build low-cost financial services—payments, savings, loans, insurance—for their community. It is supported by Stellar.org, a Silicon Valley based non-profit organization. The Stellar network enables money to move directly between people, companies and financial institutions as easily as email. This interconnectivity means more access for individuals, lower costs for banks, and more revenue for businesses.

3. Zone

New Zone

Note: The project introduction comes from the materials published or provided by the official project team, which is for reference only and does not constitute investment advice. Some of the content may be out of date, error, or omission. HTX does not take responsibility for any resulting direct or indirect losses.