On Monday, the Stellar Development Foundation (SDF) launched an initiative to eliminate inflation in its XLM cryptocurrency at the protocol level.
As the SDF notes in its blog, the proposal to switch to a noninflationary model has been discussed since last October and has been considered comprehensively during this time.
"Having heard all the opinions and weighed the arguments for and against, the SDF asks the validators to take a decision on the following proposal: we consider it a good idea to disable the current inflation mechanism," SDF writes.
The organization explains that inflation was initially introduced into the XLM protocol to support projects in need and develop the ecosystem. "Five years and millions of accounts later, it became clear that inflation does not serve this purpose. Most users pool together to receive payments into their accounts. Every week, the protocol creates new XLMs. Every week, most of them are sent to individual or SDF accounts," she adds.
If the award offer is approved, it will continue, but it will not be available for use. The developers note that technically the implementation of the solution is a trivial task, so they are ready to give up inflation in the next update, which is scheduled for the end of October. Within the next month, the validators are invited to vote to approve or reject the proposal.
For its part, SDF promises to continue to support projects that maintain and improve existing infrastructure. It was for them that inflation was introduced initially, the organization notes. In addition, by the end of the year, it intends to disclose detailed information about its assets in XLM and plans for their further distribution.
At the time of launch, SDF created 100 billion XLMs of cryptocurrency. As noted earlier, 98.5% of XLM emissions are controlled by 100 addresses, most of which are owned by SDF. Currently, the XLM inflation rate is 1% per year.
The SDF was founded in 2014 and oversees the XLM code base, supports developers and entrepreneurs, and represents Stellar in discussions with regulators and various institutions.
Will steem too have no inflation in future?