Search ForexCrunch

The Stellar Development Foundation (SDF) have changed their stance and announced that it will take away the inflation feature from the Stellar protocol as it seems to have no functionality at all. This means that in the new  upcoming version 12 it will not be included.

The company commented saying:

“After listening to what everyone had to say and weighing the pros and cons, here’s what the SDF is asking validators to consider: we think it’s a good idea to disable the current inflation mechanism.”

The inflation feature was brought in back in 2014 as a way to make more XLM. It was supposed to be a way to enhance the growth and development of the Stellar ecosystem. However, It just didn’t work for five years and a few million new accounts.

“Rather than sending inflation to projects building on Stellar, the majority of users join pools in order to claim that inflation for themselves – if they set their inflation destination at all. Every week, the protocol creates new lumens; every week the majority of those lumens go to individual account holders or to SDF accounts.”

XLM/USD has been of a fierce downtrend since May 16th losing around 63% of its value. This event is not supposed to have an effect on the price and despite rallying thirteen days ago it just could not gather enough momentum to continue. Today XLM/USD trades 5% lower at 0.058822.