Donald Trump to cancel taxes on 6 cryptos (XLM)

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Stellar (XLM) is a blockchain platform designed for fast, low-cost, and secure cross-border payments. Its native cryptocurrency, Lumens (XLM), acts as a bridge currency to facilitate transactions between different fiat currencies and cryptocurrencies. Stellar focuses on improving financial inclusivity, targeting individuals and institutions that lack access to traditional banking systems.

Key Details

  • Launch Year: 2014
  • Founders: Jed McCaleb (co-founder of Ripple) and Joyce Kim
  • Native Token: Lumens (XLM)
  • Primary Purpose: To enable seamless cross-border payments, microtransactions, and asset tokenization.

Key Features of Stellar

  1. Decentralized Network:
    • Stellar operates as a decentralized blockchain with validators spread across the globe.
  2. Focus on Financial Inclusion:
    • Designed to connect unbanked populations to financial systems via fast and affordable transfers.
  3. Bridge Currency (XLM):
    • Lumens (XLM) is used to facilitate transfers between fiat and cryptocurrencies.
  4. Low Transaction Costs:
    • Typical fees are as low as 0.00001 XLM, making it ideal for microtransactions.
  5. Token Issuance:
    • Businesses and developers can issue their own digital assets, including stablecoins, on Stellar.
  6. Built-In Decentralized Exchange (DEX):
    • Stellar includes a decentralized exchange where users can trade assets issued on the network.

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How Stellar Works?

Stellar simplifies cross-border transactions by eliminating intermediaries (like banks or remittance services).

  1. A user converts their local currency into Lumens (XLM).
  2. XLM serves as a bridge currency, enabling a seamless transfer to the recipient’s local currency.
  3. Transactions settle in 3-5 seconds at a fraction of the cost of traditional methods.

Advantages of Stellar

  1. Speed:
    • Transactions settle in 3-5 seconds, much faster than traditional banking systems.
  2. Cost-Efficiency:
    • Extremely low fees make it attractive for both individuals and institutions.
  3. Energy-Efficient:
    • Unlike Bitcoin and Ethereum (pre-Merge), Stellar uses a consensus algorithm that is environmentally friendly.
  4. Interoperability:
    • Stellar’s platform can connect with traditional banking systems and cryptocurrencies.
  5. Support for Stablecoins:
    • Stellar is home to several stablecoins, including USD Coin (USDC).

Challenges

  1. Competition:
    • Stellar faces stiff competition from Ripple (XRP) and other payment-focused blockchains.
  2. Adoption:
    • Despite its capabilities, Stellar’s adoption rate among financial institutions has been moderate.
  3. Limited Decentralized Finance (DeFi):
    • Compared to Ethereum and Solana, Stellar has a smaller DeFi ecosystem.

Key Use Cases

  1. Cross-Border Payments:
    • Facilitates near-instant international money transfers with low fees.
  2. Stablecoin Issuance:
    • Companies can issue and manage stablecoins (e.g., USDC) on the Stellar network.
  3. Micropayments:
    • Enables small-scale transactions due to its low fees.
  4. Tokenization of Assets:
    • Organizations can tokenize assets such as stocks, bonds, and commodities on the Stellar network.
  5. Charity and Aid Distribution:
    • Stellar has been used by organizations to distribute aid efficiently in underserved regions.

XLM Tokenomics

  • Total Supply: Initially 100 billion, reduced to approximately 50 billion XLM after a token burn in 2019.
  • Circulating Supply: ~27 billion XLM (as of January 2025).
  • Use of XLM:
    • Facilitates network transactions.
    • Serves as an intermediary currency for cross-asset transfers.

Stellar Consensus Protocol (SCP)

Stellar uses the Stellar Consensus Protocol (SCP) instead of traditional Proof-of-Work (PoW) or Proof-of-Stake (PoS) mechanisms.

  • SCP relies on a quorum-based agreement, where network validators come to a consensus on transactions.
  • This ensures high speed, low energy usage, and resistance to centralization.

Partnerships and Collaborations

  1. IBM and World Wire:
    • IBM’s blockchain-based payment network, World Wire, uses Stellar for cross-border settlements.
  2. MoneyGram:
    • MoneyGram integrated Stellar for real-time crypto-to-cash transactions globally.
  3. Circle:
    • Stellar hosts USDC, one of the most widely used stablecoins.
  4. Aid Projects:
    • Stellar has been used in humanitarian aid distribution, such as with the United Nations.
  1. Competition:
    • Stellar faces stiff competition from Ripple (XRP) and other payment-focused blockchains.
  2. Adoption:
    • Despite its capabilities, Stellar’s adoption rate among financial institutions has been moderate.
  3. Limited Decentralized Finance (DeFi):
    • Compared to Ethereum and Solana, Stellar has a smaller DeFi ecosystem.

XLM Price and Market Performance

  • All-Time High (ATH): $0.87 (January 2018).
  • Recent Price: XLM has fluctuated between $0.10 and $0.20 over the last few years.
    (Note: Prices are subject to market trends.)

Where to Buy XLM

XLM is available on most major cryptocurrency exchanges:

  • Binance
  • Coinbase
  • Kraken
  • Bitstamp
  • KuCoin

Wallets for Stellar (XLM)

  1. Stellar Account Viewer: Official web-based wallet for managing XLM.
  2. Ledger/Trezor: Hardware wallets for enhanced security.
  3. Solar Wallet: A user-friendly Stellar-specific wallet.
  4. Lobstr Wallet: A popular mobile wallet for Stellar.

Recent Developments

  1. MoneyGram Integration:
    • Users can send and receive funds globally with Stellar’s blockchain and MoneyGram.
  2. Smart Contract Support:
    • Stellar is exploring new layers to enable smart contract functionality.
  3. Increased USDC Adoption:
    • Stellar’s network has become a preferred platform for transferring USDC due to low fees and speed.

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