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XLM
Asset Information • XLM

Understand XLM.

A plain-English research guide to lumens (XLM), the Stellar network, the Stellar Development Foundation, the asset's history, supply and utility. Live ReguMetric intelligence remains on the XLM Intelligence page.

XLM ≠ Stellar ≠ SDF

XLM (Lumens)The native digital asset of the Stellar network.
StellarThe open blockchain network where XLM and other issued assets can move and applications can operate.
Stellar Development Foundation (SDF)A nonprofit organization that supports development and growth of the Stellar network and ecosystem.

What Is XLM?

XLM is the network's native asset. Stellar is the network itself.

Native Digital Asset

Lumens, identified by the symbol XLM, are built directly into Stellar. Unlike issued assets on Stellar, XLM does not require an issuer or a trustline.

Network Fees & Reserves

XLM is used to pay transaction fees, fund smart-contract rent, and meet minimum balance requirements. These requirements also help discourage ledger spam.

Liquidity & Bridging

Because Stellar supports many digital representations of value, XLM can also serve as an intermediary or bridge asset when moving between otherwise illiquid assets.

History & Origins

A short timeline separating the Stellar network, its native asset, and the nonprofit foundation supporting the ecosystem.

2014

Stellar & SDF Begin

The Stellar network and Stellar Development Foundation were established in 2014. SDF was created as a nonprofit organization focused on expanding access to the global financial system through Stellar.

2015

Consensus Upgrade

Stellar moved to the Stellar Consensus Protocol (SCP), a proof-of-agreement approach that reaches consensus without proof-of-work mining.

2019

Supply Model Changes

The network's 1% annual inflation mechanism ended, and the total lumen supply was reduced from the much larger amount created and accumulated under the earlier model to roughly 50 billion XLM.

About the Stellar Development Foundation

Why SDF appears frequently in XLM research—and why the foundation, network and asset should still be evaluated separately.

What SDF Is

The Stellar Development Foundation is a nonprofit organization with no shareholders. Its mission centers on creating equitable access to the global financial system using Stellar.

Relationship to XLM & Stellar

SDF supports core network development, ecosystem growth, policy work and adoption. It also holds XLM under its mandate to fund development and promote the Stellar ecosystem. SDF is an important participant, but XLM is the native asset and Stellar is the network.

ReguMetric treats foundation activity, network activity and the digital asset itself as related evidence—not as the same thing.

XLM Supply & Distribution

Stellar's supply history changed materially in 2019. Current SDF holdings and circulating supply can change, so current figures should be treated as dated snapshots.

Created at launch
100B

One hundred billion lumens were created when Stellar went live. The early protocol also included an annual inflation mechanism.

Current total supply
~50B

After inflation ended and a major supply reduction occurred in 2019, Stellar documentation reports roughly 50 billion lumens in existence. No additional lumens are created by the protocol.

SDF Holdings

SDF retains XLM under its public mandate to fund development, ecosystem growth and related work. Because balances change as funds are used or distributed, ReguMetric should link to current SDF accounting rather than hard-code a permanent holdings figure.

How the Stellar Network Works

Core concepts a new investor is likely to encounter when researching XLM and Stellar.

Stellar Consensus Protocol

Stellar uses SCP, a proof-of-agreement consensus protocol. Nodes exchange messages and reach agreement without proof-of-work mining.

Validators

Anyone can operate a Stellar Core node. Validators choose quorum relationships used to reach agreement, and validators do not receive monetary block rewards.

Accounts & Reserves

Stellar accounts maintain a minimum XLM balance based on the network's base reserve. Additional ledger entries can increase the required reserve.

Stellar DEX

Stellar includes decentralized exchange functionality and liquidity pools, allowing compatible assets on the network to be exchanged without relying solely on a centralized exchange.

Issued Assets

Stellar was designed to support digital representations of currencies and other assets in addition to its native XLM.

Smart Contracts

Stellar supports smart contracts through Soroban. Smart-contract transactions use resource-based fees and rent in addition to the network's inclusion-fee model.

What XLM Is Used For

Utility describes what the asset can do. It is not a prediction of price or investment performance.

Transaction Fees

All Stellar transactions require fees paid in XLM, helping prioritize transactions and discourage spam.

Account Reserves

XLM is used to satisfy minimum balance requirements for accounts and certain ledger entries.

Liquidity & Exchange

XLM can provide a common bridge between different assets on Stellar, helping value move across the network.

Official Research Resources

Start with primary Stellar and SDF documentation when verifying how XLM or the network works.