Stellar is a fully open-source distributed hybrid blockchain, that facilitates cross-asset transfers of value, including payments, fast: Stellar’s transactions settle in 2 to 5 seconds.
Stellar’s coins are called lumens, or XLM.
At the genesis of the Stellar Network, 100 billion lumens (XLM) were created as specified in the protocol. As part of its custodial mandate, the Stellar Development Foundation (SDF) is entrusted to oversee that the vast majority, 95 billion, of the lumens are distributed to the world.
SDF manages the execution of lumen distribution, with oversight and direction provided by SDF’s Expansion Board. The initial lumens held by SDF are required to be distributed to the world in the following manner:
- 50% for distribution via the Direct Sign-up Program
- 25% for distribution via the Partnership Program
- 20% for distribution via the Bitcoin Program
- 5% held by SDF to support operational costs
The Stellar Network has a built-in, fixed, nominal inflation mechanism. New lumens are added to the network at the rate of 1% each year. Each week, the protocol distributes these lumens to any account that gets over .05% of the “votes” from other accounts in the network.