Today were going to switch it up and talk about cryptocurrency, Particularly Stellar (XLM). Stellar is a decentralized cryptocurrency built with block chain technology that aims to connect banks, payment systems, and people in order to move money efficiently for little to no cost. The Stellar network aims to do this by the distribution and trading of XLM or Lumen. Lumens are essential in the process of lowering cost by offering a medium between fiat currencies, banks, and people. Stellar has a great deal of benefits to offer the world and becoming apart of the network is easier than you might expect.
How to participate in Stellar!
Participating in Stellar is quite simple. For anyone new to cryptocurrency finding an exchange can be scary. Luckily, with mainstream adoption finding an exchange is easier than ever. Places like Coinbase.com offer streamlined service that allow users to create accounts and use USD to buy a number of cryptocurrencies including XLM. Once you’ve created an account on your favorite exchange you can begin buying XLM. Owning XLM now allows you to transfer, trade, and benefit from Stellar’s growth.
What is Stellar inflation rewards?
Stellar inflation rewards is a specific protocol built into the Stellar network. This specific protocol allows the Stellar network to generate 1% of their total 100Bn Supply per year via a voting system. In order to benefit from this system a user must hold any amount of stellar and receive 5% of the vote on the stellar network. Votes are cast each week by Stellar holders. Typically a single stellar holder will not be able to generate 5% of the vote alone. In which case, exchanges like Poloniex allow users who partake in the exchange to vote for the exchange, in order to receive a share based on their percent of XLM they hold on the exchange. For example, If an exchange holds 500,000 stellar and they receive the minimum 5% vote and as a user you hold 5000 XLM (1%) then upon the exchange receiving the inflation rewards you would be granted 1% of the reward in XLM.
Where can I take advantage of inflation rewards?
Currently for United States Citizens Poloniex is the only exchange currently offering Stellar inflation rewards for its users. Joining Poloniex is like joining many other exchanges. ID, Social security number, and proof of residence are all required in order to join. Once verified having stellar on the exchange is all that is necessary in order to benefit, provided they receive 5% of the vote each week.
How many Stellar will I Receive in rewards?
Receiving XLM on Poloniex will be determined based on the percent value of stellar you hold on the exchange. As stated above in our example if you hold 1% of all stellar on Poloniex you will receive 1% of the reward.
How many Stellar are generated in rewards?
Stellar inflation rewards are generated at 1% per year of the total 100Bn Stellar supply. Therefore, a maximum of 1Bn Stellar are generated per year and approximately 19 million per week. However this is not an exact science and the number of XLM generated will vary. Poloniex has received over 400,000 in XLM rewards within its first week of actively participating in inflation rewards.
For anyone interested in cryptocurrency, Stellar is an excellent way to get involved. With so many new ways to experience commerce in the digital age, Stellar truly offers solutions for the long term while benefiting its users.
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