XLM Burn Increased Coin’s Centralization, Argues Charlie Lee

[cheezcarls]

After the recent announcement that the Stellar Development Foundation (SDF) had burned roughly 55 Billion XLM, Charlie Lee took to Twitter to point out that based on the math, the SDF had actually increased their control of the coin’s supply by about 8%. This observation was met with some push-back from the XLM community, including attacks on Lee himself.

As BeInCrypto has recently reported, the destruction of roughly half the supply of XLM led to an almost immediate bump in the current market price. The stated reason for this decision “was to be as efficient as possible in our work,” going on to say that “those 55.5 billion lumens weren’t going to increase the adoption of Stellar.”

To read the full news, you can go here

I do have a question for all of you, especially XLM holders. I myself is an XLM holder too. However, as Stellar burned down 55 billion of its tokens, do you honestly agree about Charlie Lee's statement that it's going to increase XLM's centralization?

And do you also agree about the statement regarding the 55.5 billion XLM not going to contribute to Stellar Lumens' adoption? I would love hearing some different opinions from the amazing community here. No matter if it's positive or negative, I would greatly appreciate it.

Thanks in advance!

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[Bttzed03]

There are probably a few people in the XLM community who are already aware of the figures and Charlie Lee just made the figures more public. It's a fact that the team's holdings (by percentage) increased from burning less of its operating fund but to quickly interpret it as an increase in centralization might be unfair though. They still need funds to sustain the project for long term and burning more could have an adverse effect.

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And do you also agree about the statement regarding the 55.5 billion XLM not going to contribute to Stellar Lumens' adoption?

From what I've seen so far, supply is somewhat irrelevant to adoption of a certain project. It's more relevant to the price.

[Aabcde]

I personally hold several XLM. Seeing this news that Lee said it did not hurt, because it could have been a possibility that will happen in the future.
But I believe that XLM will continue to be developed.
That problem will become centralized, I think as long as they keep trying to be the best, there is no problem. And about the adoption of the period, I think SDF is enough to give free XLM to the wider community because in fact only a handful of people who enjoy the results with greed.
At least that's what I can say, I don't care about people who disagree with me.

[DaMut]

This does make sense to me because the coin is supposed to be used for airdrop or global distribution but the team decided to burn almost half of coin total supply and canceled the airdrop, most of burned coins came from the community. But it will not affect the price because from the start it has been like this, both XRP and XLM are brothers.
I would not be surprised to see both of them walk closer to full centralized cryptocurrency.

[ecnalubma]

Lee’s opinion might be right but if the SDF holdings is included to that 55 billion Lumens burned then that would be fair. However lowering supply will make stellar more valuable but it will be a mixed reactions to the community some might be skeptical about their move.

[slaman29]

First of all, is Beincrypto anything to do with beinsports? Saudi Arabia is now trying to conquer the crypto news space maybe?

Secondly, Charlie Lee is a guy I like, and he's kind of right, but he didn't exactly do much different by letting go of all his Litecoin last year. I don't think he dumped on us, but he kinda also had a big effect by what he did.

[Febo]

After the recent announcement that the Stellar Development Foundation (SDF) had burned roughly 55 Billion XLM, Charlie Lee took to Twitter to point out that based on the math, the SDF had actually increased their control of the coin’s supply by about 8%. This observation was met with some push-back from the XLM community, including attacks on Lee himself.

It makes total sense. When you burn total supply you should also burn same part of tokens you got fro free. Same problems were at some ICOs few years ago. Planed was that developers got like 20% of all tokens and then they burned what was not sold in crowdfunding and then developers share grow for over 50% of tokens.  With tokens that dont matter if developers then dont dump them, but with stellar maybe matters. But I dont know much how stellar consensus works. Reducing number of coins always empower holders.

[BoisclaiR]

XLM is another shit from Ripple corporation. Do not believe into these burning dramas.

[magneto]

I doubt that all of the coins that goes into the airdrop will end up in the 'rightful' people's hands. I.e., the people who are supposed to adopt the tokens as a means of payment or continue to use their network.

Almost everyone will be seeking to cashing out their Keybase and other airdrop earnings instantly as they receive it, which means that adoption will likely not increase linearly with the amount of airdropped coins.

But I doubt that centralisation will be deteriorated as a result - it will be stagnant at worst.

[Convery]

But I love how Stellar distributes the coins among users. They created 2 biggest airdrops in the history. One was managed by Blockchain.com and second one is managed by Keybase. Every participant of these 2 airdrops earned aeound 75USD in total. Good way how to distribute coins equally among users plus users are very thankful for this opportunity.

[bitcampaign]

But I love how Stellar distributes the coins among users. They created 2 biggest airdrops in the history. One was managed by Blockchain.com and second one is managed by Keybase. Every participant of these 2 airdrops earned aeound 75USD in total. Good way how to distribute coins equally among users plus users are very thankful for this opportunity.

I also don't really like and save xlm, but I like their free airdrop especially since it was held on the blockchain site, I only get $ 25 just by verification there, but unfortunately the airdrop is stopped while many of my friends don't get aidrop payments from blockchain, no which looks interesting by burning XLM supplies all eyes just want a free airdrop than buy it

[wozzek23]

This does make sense to me because the coin is supposed to be used for airdrop or global distribution but the team decided to burn almost half of coin total supply and canceled the airdrop, most of burned coins came from the community. But it will not affect the price because from the start it has been like this, both XRP and XLM are brothers.
I would not be surprised to see both of them walk closer to full centralized cryptocurrency.

Burning of token usually is meant to reduce the supply strength and then increase the value of the token a little bit because I have seen some projects use this in the past, but I don’t know why it did not have much effect on stellar after the action, and maybe it will still have an effect, I am watching.

I am not much an investor or a user of xlm, but I think that they are still a little bit better than xrp, xrp has the highest level of centralization, which is why you are seeing it not growing at all, because people would rather go for projects that they know they still have some level of privacy and then control over their investment, unlike all this coins that controls whether the value increases more or not. From these xlm actions, you will see that they have no similarity to xrp.

[chunnu39]

as SDF burn 50 billion xlm but the price fluctuates in 0.06$ to 0.08$
(date Nov 08 to Nov 19) but no increase in sudden hike I think xlm needs more adoption. But after-burn still to much supply in circulation.

[Kemarit]

as SDF burn 50 billion xlm but the price fluctuates in 0.06$ to 0.08$
(date Nov 08 to Nov 19) but no increase in sudden hike I think xlm needs more adoption. But after-burn still to much supply in circulation.

It's because the price of any coin won't simply grow overnight. And as you have said, we need more adoption and when it will happen? only time can tell. Right now we are still in the bear market that's why the price is very slow to grow. As per Charlie Lee's argument, I think he has a point here, however we all know that XLM is already a centralize coin, so it doesn't make sense to say that it will increased the coin's centralization to 8%? In the first place, you have given them control only a 8% won't make any difference at all, IMHO.

[chaoscoinz]

After the recent announcement that the Stellar Development Foundation (SDF) had burned roughly 55 Billion XLM, Charlie Lee took to Twitter to point out that based on the math, the SDF had actually increased their control of the coin’s supply by about 8%. This observation was met with some push-back from the XLM community, including attacks on Lee himself.

As BeInCrypto has recently reported, the destruction of roughly half the supply of XLM led to an almost immediate bump in the current market price. The stated reason for this decision “was to be as efficient as possible in our work,” going on to say that “those 55.5 billion lumens weren’t going to increase the adoption of Stellar.”

To read the full news, you can go here

I do have a question for all of you, especially XLM holders. I myself is an XLM holder too. However, as Stellar burned down 55 billion of its tokens, do you honestly agree about Charlie Lee's statement that it's going to increase XLM's centralization?

And do you also agree about the statement regarding the 55.5 billion XLM not going to contribute to Stellar Lumens' adoption? I would love hearing some different opinions from the amazing community here. No matter if it's positive or negative, I would greatly appreciate it.

Thanks in advance!

Wow, I really don't know if this wasn't expected. XLM is a pretty big Cryptocurrency, it's even rated as top 10 in rank on http://coinmarketcap.com. Centralization isn't always a bad thing, a lot of good projects have a some what centralized platform model. Stellar had that massive airdrop for Blockchain.info and I believe that it was a very successful, but didn't increase adoption at the rate they had hoped. According to the article,
Stellar foundation claims that the burning was necessary in order to implement a newer and more efficient business model. It also seems like there may have been too many Lumen available within the circulating supply so they decided to burn some.

[Nadziratel]

I do have a question for all of you, especially XLM holders. I myself is an XLM holder too. However, as Stellar burned down 55 billion of its tokens, do you honestly agree about Charlie Lee's statement that it's going to increase XLM's centralization?

And do you also agree about the statement regarding the 55.5 billion XLM not going to contribute to Stellar Lumens' adoption? I would love hearing some different opinions from the amazing community here. No matter if it's positive or negative, I would greatly appreciate it.

Thanks in advance!

Lee has a different worldview. With this decline in the number of XLMs, I do not know what rate of centralization can be achieved. But I think this will have a positive effect on the diet. I know, so far there hasn't been a significant rise. Maybe not in the short term. But if we look at the big picture, this decrease in the number of coins will surely have a positive effect on the price.

[Rustamm]

Definitely burning XLM coins contributed to the increase in the price of the coin, but I think the airdrop they spent negatively affected the price of the XLM coin, since most of those who received the coin sold them for free on the exchange cheaply. But in general, such steps by the team led to the fact that more people learned about the project.

[ajiz138]

I'm not concerned about burning 55 billion tokens. It's been Charlie Lee's decision and I believe it's a good decision that will make XLM prices go up. I am also an XLM holder, quite happy with this burning, even though there are pros and cons. But the price of XLM will improve enough when bitcoin is stable so that XLM will recover.

[posi]

Charlie Lee, is someone i knew for been honest type even when sold all his LTC holding he said it to the public and aside that after reading the article I'm sure he's telling the truth cause the coin burned by XLM ought to be giving to the public. However, before Charlie make his statement i also believe the 55.5 billion coins burned by the XLM team won't improve the coin price in the market.

[shinratensei_]

as SDF burn 50 billion xlm but the price fluctuates in 0.06$ to 0.08$
(date Nov 08 to Nov 19) but no increase in sudden hike I think xlm needs more adoption. But after-burn still to much supply in circulation.

The price of XLM is going back again to the 0.06 and that means the burn of 55 billion XML didn't give any impact to the price of XLM itself. I do agree with what already said by charlie about that.
Those 55 billions will not be adopted by the users.
Some may think the burned token will correlated with the price of XLM itself but remember in circulating supply is only 21 billions XLM.
It's impossible to the crypto users to adopt another 55 billion XLM. XLM has become a centralized coin since it was started in the past. What created by jed is a centralized coin. But this one is a bit better compared with XRP. The worst centralized coin i have ever seen.