The creator of Litecoin, Charlie Lee, has berated the Stellar Development Foundation (SDF) for burning 55 Billion XLM tokens, more than half of the cryptocurrency’s supply, without seeking the consent of its community, despite claiming to be decentralized.
Charlie, speaking a day after the token burn, said the foundation only burnt 5 Billion of their own 17 Billion XLMs, claiming the token should have been shared among the Stellar community.
By so doing, Charlie said SDF increased their percentage of total coins from 16% (17/105) to 24% (12/50) without debriefing the XLM community.
Charlie said: “50B XLMs burned were supposed to be distributed to the community. Stellar Development Foundation only burned 5B of their own 17B XLMs. This means SDF increased their percent of total coins from 16% (17/105) to 24% (12/50). And they did this without any community discussions.”
Charlie responded to WhalePanda’s statement that Stellar is becoming more centralized than before with its decision to burn more tokens.
According to WhalePanda, the decision increases the chances of XLM being delisted on exchanges.
“I wonder how long it will take for them to realize that burning 50% of the supply actually makes you [Stellar] even more a security and increases the chances of getting delisted on exchanges,” WhalePanda said.
Although there were around 105 billion XLM created, but there are just 20 billion in circulation at the moment. The recent token burn brought the total supply to 20 billion. The token burn resulted in XLM’s price spike by over 20% to $0.085 in the twinkle of an eye.
Stellar Development Foundation’s action resulted in diverse debate among cryptocurrency experts, with some demanding that the team behind their much-loved cryptocurrency project also burn some percentage of their own tokens.