20.01.2021

Stellar’s Foundation Just Destroyed Half the Supply

The organization decided instead it was better to project how much it could actually use over a 10-year period and calibrate to that number. “To derive a plan from an arbitrary number serves no purpose,” Dixon said.

MEXICO CITY – The Stellar Development Foundation has burned 55 billion of its XLM tokens, over half the cryptocurrency’s supply, CEO Denelle Dixon announced from the stage of the Stellar Meridian conference Monday.

Previously, there had been 105 billion XLM in existence, with 20 billion in circulation. With this burn, the supply has shrunk to 50 billion.

“We didn’t start by wanting to burn. We started by asking, ‘What do we need?’” Dixon told the room of roughly 200 attendees. “As much as we wanted to use the lumens that we held, it was very hard to get them into the market.”

The news was greeted warmly by the crowd, many of whom likely own the token. One participant in the packed room stood up and asked everyone to give Dixon a round of applause, which they did.

In the hour following the announcement, XLM’s price jumped about 14 percent, to $0.08, according to data provider Nomics.

XLM price chart. (Screenshot via Nomics)

Dixon told CoinDesk that she couldn’t anticipate how the crypto market might react, saying:

“I don’t know. I really just don’t have a sense at all of what the market response is. From my standpoint, it’s how the ecosystem feels about it. We got a lot of positive response from the ecosystem because we are rightsizing what the foundation has and the foundation holds.”

The foundation now controls 30 billion XLM, divided into several buckets. It has 12 billion XLM in the direct development fund (formerly called “operations”), to support the organization.

In “ecosystem support” it has 2 billion XLM remaining (1 billion for currency support, and 1 billion for infrastructure grants).

Stellar has 10 billion XLM set aside to make investments (with 2 billion XLM for new products, and 8 billion XLM in its enterprise fund).

Finally, under user acquisition, the foundation has 6 billion XLM (2 billion for marketing stellar and 4 billion for in-app promotions).

The supply of XLM is fixed now because the community of token holders voted to discontinue inflation on Oct. 28.

“SDF will not burn any additional lumens,” Stellar said in a blog post.

Stolen Binance Funds Still Being Laundered Through Mixers, Researchers Claim

Binance’s recent hacker has been diligently washing funds stolen from the exchange back in May.

Clain.io, a Luxembourg-cryptocurrency capital flows research team, says the 7,074 stolen coins are being laundered through mixing service Chipmixer. Clain says at least 4,836 bitcoins were laundered since June 12.

A bitcoin tumbling service mixes bitcoins with other users’ coins. Since bitcoins are attached to the publicly verifiable blockchain, mixing services are used to obfuscate transaction histories that follow bitcoins around.

Chipmixer was overwhelmed with the funds, Clain states. From June 12 onward, the hacker dumped funds into the mixer with abandon.

“It was pretty straightforward to trace the hacker’s subsequent steps as it is practically impossible to launder big volume of coins in a relatively short period of time. Thus, we were able to detect the initial pool of hacker’s addresses,” the company wrote.

Clain says that Chipmixer has never handled inflows of such high volume, leading them to conclude that most funds coming out of Chipmixer today are related to one owner, the Binance hacker.

Address analysis shows the hacker further breaking his loot into smaller sums of around 10 coins. Breaking the lump sum into small mixed batches is one way to prepare for off-ramping cryptocurrencies into fiat. Clain says 150 clusters were detected during the active mixing period and further believes some 5,300 bitcoin have been clustered overall.

Of the 4,836 coins tumbled, Clain has identified 183 bitcoins from the hacker with another 814 very likely to be from the hacker.

Clain’s analysis shows little evidence to indicate any of the coins have hit the open market.

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