Stellar Lumens decides to end XLM inflation with the latest update as Binance pulls XLM staking program

Stellar Lumens had a great start to 2019, which was later brought down due to the bear crunches. Post the IBM partnership; Stellar has again made news after the report came in that Stellar has ended inflation of XLM with the latest protocol update. The Stellar Development Foundation [SDF] has stated that there will be three new “Core Advancement Proposals,” which was approved following the latest vote.

The SDF worlds as a nonprofit organization that caters to promote global financial access and inclusion through the development of open source and free financial technologies. The upgrade proposed to the Stellar network will enable senders to keep track of the amount of capital they want to send during foreign cross border transactions. This is the recipient’s native currency set a further reach from the current setting here, the money to be sent.

One of the main aims of the upgrade was to give users of the cryptocurrency an option to give back to the Stellar Lumens ecosystem. The ideas were first proposed by Joseph Lubin, the founder of Stellar Lumens who had said earlier:

“[Inflation] is complicated. I’m not sure [inflation] really serves its original purpose. [Inflation’s] performance will drag as we have many more accounts. The downside [to getting rid of inflation is] we will have to start burning fees.”

Despite the latest reveal, Stellar did not see much of a change in its price, with the 11^th placed cryptocurrency trading for $0.065. The cryptocurrency also held a market cap of $1.31 billion with a 24-hour market volume of 273.8 million.

The upgrade also resulted in Binance, the world’s largest cryptocurrency in pulling its Stellar staking program from its functionalities roster. Post the Stellar protocol change, Binance announced:

“Binance will distribute staking rewards earned from Stellar earned up until the time of the upgrade, which occurred at 2019/10/28 4:00 PM (UTC). Users will still receive the October XLM distribution in the first 5 days of November. Moving forward, users will no longer receive any Stellar rewards.”

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