XLM (Stellar Lumens) is the native cryptocurrency of Stellar, a blockchain network designed for fast and affordable cross-border payments. Stellar was introduced in 2014 by Jed McCaleb, co-founder of Ripple, and Joyce Kim. It was designed to connect conventional financial systems with blockchain technology, with a specific focus on underbanked individuals and businesses.
Unlike Ethereum-based networks, Stellar operates on its own Layer 1 blockchain, built for fast, low-cost transactions. Payments settle in seconds, with fees averaging a fraction of a cent ($0.01). The network also runs on an energy-efficient consensus mechanism, the Stellar Consensus Protocol (SCP), which helps to maintain decentralization and security without relying on proof-of-work mining, traditional staking, or token burning.
Stellar is expanding an ecosystem of borderless payments, remittances, and tokenized assets. Its underlying structure enables businesses to issue digital currencies, settle transactions quickly, and integrate blockchain technology into financial services.
Initially, the blockchain launched with 100 billion XLM coins. However, in 2019, the Stellar Development Foundation (SDF) performed a one-time burn, reducing the total supply to 50 billion XLM. Unlike most blockchains, Stellar does not support token staking or inflationary token issuance. Instead, it relies on independent validators to maintain network security and stability.
With growing adoption by businesses and financial institutions, Stellar continues to drive innovation in global payments and digital asset issuance. As blockchain adoption expands, Stellar remains at the forefront of improving financial access and efficiency worldwide.
