Stellar Lumens (XLM) is the native token of the Stellar ecosystem. Stellar aims to enable fast, efficient, and cheap cross-border payments. Users can create, send, and trade digital representations of all forms of money using the Stellar network. Stellar was created by Jed McCaleb, the founder of Ripple. The main utility of XLM is to act as a bridge between two different currencies and enable seamless cross-border transfers.
Originally, 100 billion XLM were premined with an annual 1% inflation rate. Unlike Bitcoin and Ethereum, XLM isn’t mined via a consensus mechanism. The Stellar Consensus Protocol (SCP) uses quorum slices to coordinate agreement throughout the network. In 2019, the network decided to reduce the overall supply and remove the inflation mechanism via a governance vote.