Stellar (XLM): how it works, supply and reviews
Layer 1 blockchain
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Key facts
- Ticker
- XLM
- Category
- Layer 1 blockchain
- Network
- token on Stellar
- Official site
- stellar.org
- Whitepaper
- 8130068.fs1.hubspotusercontent-na1.net/hubfs/8130068/stellar-consensus-protocol.pdf
- Source code
- github.com/stellar/stellar-core
Data: CoinGecko, 2026-10-27. Only projects that still trade with meaningful volume are listed.
What is Stellar
Stellar is an open-source public blockchain for payments and asset tokenization, with a native smart contracts platform called Soroban. Its native currency, the lumen (XLM), pays transaction fees, smart contract rent and account minimum balances.
Network and consensus
| Parameter | Details |
|---|---|
| Type | Public layer-1 blockchain with a native smart contracts platform |
| Consensus | Stellar Consensus Protocol (SCP), a form of Federated Byzantine Agreement; each validator chooses which nodes it trusts |
| Validator rewards | None; validators receive no monetary rewards |
| Block time | A new ledger roughly every 5–7 seconds |
| Smart contracts | Soroban: contracts written in Rust and compiled to WebAssembly |
| Programming language | The node software, Stellar Core, is written in C++20 |
| Smallest unit | 1 stroop = 0.0000001 XLM |
Supply and issuance
| Parameter | Details |
|---|---|
| Initial supply | 100 billion XLM created when the network went live; XLM is not mined |
| Inflation | 1% a year in the early years; ended by validator vote on 28 October 2019 after about 5.44 billion XLM were added |
| Burn | On 4 November 2019 SDF sent about 55.4 billion XLM to an account with no signers, removing them permanently |
| Fees | Fees go to a protocol-level fee pool that no account can access; minimum fee 100 stroops per operation |
| Foundation holdings | SDF holds lumens under its mandate to spend or distribute them to develop the ecosystem |
On 27 October 2026: 35,229,264,914 XLM in circulation, 50,001,786,837 XLM in total (source: Stellar Development Foundation dashboard API (lumens supply)).
What XLM is used for
- Pays all transaction fees on the network.
- Pays rent for smart contract data stored on the ledger.
- Covers the minimum balance every account must hold (two base reserves, currently 1 XLM).
Who develops and governs Stellar
- Foundation
- Stellar Development Foundation (SDF), a self-funded non-profit with no shareholders
- Founded
- SDF was set up in 2014 and given the lumens to promote the network
- Governance
- Validators set network parameters such as the base reserve and fee minimums, and voted to end inflation in 2019
- Open source
- Yes; Stellar Core is published on GitHub (stellar/stellar-core)
History
| Date | Event |
|---|---|
| 2014 | The Stellar Development Foundation is set up and receives lumens to promote the network. |
| 2015 | Stellar changes its consensus algorithm and relaunches the network; an upgrade reserve is set aside for holders of the old tokens. |
| 28 October 2019 | Validators vote to end the 1% annual network inflation. |
| 4 November 2019 | SDF burns about 55.4 billion XLM and ends its giveaway programmes, roughly halving the total supply. |
Security and audits
- A small fee on every transaction prevents ledger spam; during congestion, transactions are prioritised by fee.
- Asset issuers can use built-in controls to approve, revoke and freeze the assets they issue.
Risks and caveats
- A large share of XLM is held by the Stellar Development Foundation under its mandate and is expected to enter circulation over time.
- Issuers of assets on Stellar can freeze or revoke the tokens they issue.
- Validators can change network parameters such as the base reserve by vote.
Official links
- Website: stellar.org
- Docs: developers.stellar.org
- Source code: github.com/stellar/stellar-core
- Supply dashboard: dashboard.stellar.org
- Blog: stellar.org/blog
- Foundation mandate: stellar.org/foundation/mandate
Questions and answers
What is Stellar (XLM)?
Stellar is an open-source public blockchain for payments and tokenized assets. XLM, the lumen, is its native currency used for fees, smart contract rent and account minimum balances.
Who is behind Stellar?
The Stellar Development Foundation, a non-profit set up in 2014, supports the network and holds lumens under its mandate.
What is the supply of XLM?
100 billion XLM were created at launch and about 5.44 billion were added by inflation until October 2019. After SDF burned about 55.4 billion in November 2019, the total is about 50 billion, and no new XLM is issued.
How does Stellar reach consensus?
Through the Stellar Consensus Protocol, a Federated Byzantine Agreement in which each validator chooses the nodes it trusts. There is no mining or staking reward.
Sources
- CoinGecko — Stellar
- Stellar Docs — Lumens (XLM)
- Stellar Docs — Stellar Consensus Protocol
- Stellar Docs — Fees, resource limits and metering
- Stellar Docs — Stellar stack
- Stellar Docs — Smart contracts overview
- Stellar — Intro to Stellar
- Stellar Development Foundation — Mandate
- stellar/stellar-core — README
- SDF dashboard API — lumens
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