Stellar Lumens had made news previous week after announcing its coin burn and the Stellar Development Fund [SDF]’s roadmap for the future. Although the news was met with a lot of furor within the Stellar community, some other cryptocurrency proponents have shared their concerns. One of the leading crypto proponents to voice his issue is Charlie Lee, the creator of Litecoin.
In a recent tweet, Lee stated:
“50B XLMs burned were supposed to be distributed to the community. Stellar Development Foundation only burned 5B of their own 17B XLMs. This means SDF increased their percent of total coins from 16% (17/105) to 24% (12/50).And they did this without any community discussions.”
At current prices, the value of the tokens burnt amounted to $4.7 billion, and as soon as the news was revealed on November 4, the price of the 10th ranked cryptocurrency shot up by a massive 25 percent. Before the burn occurred, the Stellar Development Foundation, in an official blogpost, had said:
“SDF can be leaner and do the work it was created to do using fewer lumens. Over the years we’ve also seen that giveaways and airdrops have diminishing effects, especially in the outsized amounts our original plan was designed to support. So a smaller public-facing program would have just as much impact.”
Some other proponents of the field have also opined that burning 50 percent of the supply actually makes the asset more of a security. This might thereby increase the cryptocurrency’s chances of getting delisted on exchanges.
The SDF has listed out a detailed plan on what to do with the remaining XLM tokens after the coin burn. According to the organization, 12 billion of the total remaining assets from the SDF operating fund will be dedicated to an aggressive program of advocacy and direct development of Stellar.
Charlie Lee’s comments on the XLM burn were met with mixed reviews with some agreeing with him while others called him out for selling his LTC tokens at the top of the 2017 Bitcoin bull run phase. Some members even took Stellar’s side, asking in what way does send a lot of tokens in holding to a locked wallet makes the asset security. N.Ei, a crypto enthusiast, replied to Charlie Lee, tweeting:
“I’mconfused. Don’t know if I should look at it as “it is so cetralized that they could decide to burn this amount” or “well, now they lost a major part of their cointrol over the whole mark.cap”. Like @ripple owning the 50% of XRP!”
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