Post
Topic
Board Announcements (Altcoins)
Re: Stellar
by
EvaStellar
on 23/05/2016, 01:50:30 UTC
Ideally the value in adoption/awareness will offset any "inflation." I put inflation in quotes because the total amount of lumens is transparent/static and so should be factored into any valuation.

Just to clarify, the total amount of lumens is transparent, but it isn't static.

The Stellar network has a built-in, fixed inflation mechanism. New lumens are added to the network at the rate of 1% each year. The network also collects a base fee for each operation in a transaction. The funds from base fees are added to the inflation pool

The fixed inflation rate and base fee are nominal; however, as anchors and integrators join the network, lumens may become more valuable. 

As a balancing measure for the ecosystem, anyone who holds lumens can vote on where the funds in this pool go. Each week, the protocol distributes these lumens to any account that gets over .05% of the votes from other accounts on the network.