Stellar scraps XLM inflation in the latest protocol update
|- Stellar releases a new version of its protocol that does not support the inflation feature.
- XLM/USD is moving within a short-term downside trend.
Stellar network finished the scheduled protocol update to v12. The new version disabled the inflation mechanism for XLM tokens, according to the announcement made by Stellar Foundation in the official blog post.
The Test Network (Testnet) reset is scheduled on Wednesday, October 30, 2019.
The proposal to eliminate inflation was made in October 2018. After lengthy discussions, the team decided to do just that, because inflation " isn’t benefiting projects building on Stellar".
The inflation was conceived as an incentive mechanism, "whereby account holders would collectively direct inflation-generated lumens toward projects built on Stellar." However, it failed to live up to expectations.
What's going on with Stellar (XLM)
XLM/USD is changing hands at $0.0640, off the recent high of $0.0780 hit on October 25. The coin's movements are limited by SMA50 (Simple Moving Average) daily ($0.0624) on the downside and SMA100 daily ($0.0682) on the upside. We will need to see a sustainable move outside this narrow channel to build a clear trend.
Stellar (XLM) is now the 11th largest digital asset with the current market value of $1.2 billion. The coin has lost nearly 4% on a day-to-day basis amid global downside correction on the cryptocurrency market.
XLM/USD, daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.