Poloniex Exchange successfully distributes over 1.2 million XLM to its users through Stellar Inflation Rewards
According to a recent tweet from the official Poloniex crypto exchange account, more than 1.2 million Stellar Lumens (XLM) have been distributed to many of the Poloniex users who hold Stellar as part of Stellar Inflation Rewards, a collaboration between the exchange firm and Stellar Lumens .
What is a Stellar Inflation Reward?
In early May, Poloniex announced a reward system for XLM holders. Basically, the Stellar network runs with a voting system. This system gives each holder of a unique XLM token the right to a single vote.
If a holder continued to accumulate enough to be eligible for at least 0.05% of the voting rights in the Stellar network, the network would reward that holder with new XLM tokens at a rate of 1%. In summary, as long as you can vote 0.05% of the network, you will be credited with 1%.
According to the announcement, Stellar keeps its promise and has already issued 1.2 million XLM – around $ 96,000. The announcement also answers some questions in the form of a Frequently Asked Questions (FAQ) format.
It lists Tuesday as the official weekly payday for all Stellar holders who meet the requirements at the time of the weekly balance snapshot, which takes place every Monday at 8:00 p.m. ET.
It also states that a holder must have at least 1 STR in their Poloniex account at the time of the snapshot to be eligible. In addition, Poloniex customers are expected to verify their eligibility by logging into the platform.
All accounts without a good reputation, including closed or frozen accounts, are automatically forfeited. Most importantly, Stellar inflation is restricted by certain prohibited jurisdictions as stated in the Poloniex User Agreement. Some of these places are China, Germany, Pakistan, Vietnam, and New York.
Poloniex also advises that the process is free and automatic for eligible account holders. However, it clearly takes no position on whether or not these bonuses are taxable. Instead, it says on the page: “We recommend that you contact a tax advisor for more information.”