9.5 million XLM Airdrop and Stellar Staking announced by Binance

18th July 2019 | Peter Wind

In a new announcement, Binance says its users can wager their Stellar Lumens (XLM) tokens even if they are held on the exchange. The program will go into effect on July 20 when Binance begins recording daily snapshots of users’ XLM balances. The minimum participation requirement to be eligible is 10 XLM, which is less than $ 1 at current prices. The bonuses are distributed to users on a monthly basis.

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In addition to introducing a welcome benefit for XLM holders, Binance will toss 9.5 million XLM tokens valued at approximately $ 775,000 at current prices. A blog post on the stock exchange states that while implementing the XLM deployment, they found that their XLM stocks generated around 9.5 million XLM:

“As early as August 2018, the Binance team followed the Stellar team’s recommendations to change some parameters for both cold and hot wallets. This change has allowed us to unwittingly start earning stake rewards as of August 31, 2018. As we looked into using Stellar for Binance.com this week, we found that we had already earned 9,500,000 XLM ($ 775,000) additional XLM tokens. “

Despite all of the talk of “staking”, Stellar does not use a proof-of-stake consensus algorithm.

The Stellar Protocol has an inflation mechanism that distributes XLM tokens to existing holders at a rate of 1% per year. Smaller XLM holders have to join an “inflation pool” in order to claim inflation. Joining a stellar inflation pool like Lumenaut is very easy and free for the user. However, users must keep the XLM in a standard wallet to receive the reward. This makes it inaccessible to users who keep their XLM on most exchanges.

If Binance jumps on board, it’s likely that its competitors will soon allow XLM holders to benefit from the inflation premiums as well.

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