Stellar developers turn off XLM inflation mechanism
Representatives of the Stellar Development Foundation (SDF) said they would remove the inflation feature in the upcoming protocol update, as users are not using it for its intended purpose. In their opinion, it will also lead to the problem of scaling in the future.
SDF recalled that the weekly generated XLM tokens (1% per year) were intended to support projects on the Stellar network by voting among users. Most users join in pools to receive payments to their accounts, rather than vote for useful projects.
“Each week, the protocol creates new XLMs. Every week, most tokens are sent to individual account holders or SDFs, ”wrote Stellar developers.
SDF invited validators to install a new version of the protocol. Network update will occur on October 28.
If consensus on the upgrade is not reached, the developers will again turn on the inflation function in the next version.
Recall that in May, the Stellar blockchain “turned off” for two hours.