If you are a Stellar Lumens XLM holder and also a Poloniex user, we’ve got some good news for you. Poloniex will support Stellar’s inflation rewards in its platform so you’ll be able to rip the benefits and get more value from your XLM assets, as it’s meant by both Stellar and Poloniex. So if you’re at Poloniex and you have a balance in XLM coins, you’re eligible.
Stellar Lumens was founded by Jed McCaleb (of eDonkey and Ripple fame). It started as a Ripple fork, but it’s acquired a life of its own since then. It’s a decentralized payment protocol, based on open-source and blockchain technology. The project includes a currency called “Lumen” (XLM) which powers the network in a similar way in which Ether powers the Ethereum platform.
The network uses a consensus method that allows for new blocks for the chain to be produced safely and quickly. That translates into fast and cheap transactions. The whole verification takes only a few seconds. It’s immaculate and transparent.
The project’s solid fundamentals have allowed its leadership to secure many crucial strategic partnerships, even with companies and institutions that are not exceedingly friendly to the crypto verse. Perhaps the most important one amongst them is IBM. Big Blue has chosen Stellar Lumens as its blockchain.
Every blockchain-based project developed by the old technology giant will adopt Stellar’s network technology. This is a huge deal. If you are one of those people old enough to remember what IBM’s support did for Microsoft and Intel (among other companies that are now the industry’s giants), then you will probably conclude that Stellar has a bright future ahead, just because IBM will make things happen for it.
Stellar inflation rewards
So what is an inflation reward, I hear your question? Well, we thought you’d never ask. The Stellar network includes a voting system. You have the right to a single vote per every unique XLM token you own. If the number of XLM you hold entitle you to 0.05% of the network’s voting power or more, then the Stellar Network will issue new XLM tokens to your wallet at the rate of 1%. And Poloniex will be one of the platforms in which you can redeem this right.
The feature is unique to Stellar Lumens. Many other blockchains allow you to earn passive income, but you usually need to move your tokens around for that. For instance, you need to use the platform’s decentralized apps in some way, or you need to freeze some of your assets. The specific mechanism isn’t relevant, the key is that you have to do something to earn your income. Not in Stellar. If you can vote for 0.05% of the network, then you get 1%. It’s as simple as that.
And how many tokens do you need to own to qualify? Well, the total circulating supply is of 19,185,277,038 XLM, so 0.05% of that is 9,592,638 tokens. And at USD 0.1306 per token (the spot trading price as we write this), buying your 0.05% of the network will set you back by USD 1,195,923.83. And the minimal inflation reward you could get is of USD 11.959,23, which is not bad for doing basically nothing.
The platform is in the process of enabling this feature, which is expected to be operational soon, in a matter of weeks. Once it’s online, the rewards will be available weekly for all users that qualify.
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