The Stellar Development Foundation proposed disabling the network's 1% annual inflation mechanism, arguing it no longer benefits ecosystem projects. Validators will vote on whether to accept the change in Stellar Core v12.
The Stellar Development Foundation announced a proposal to disable the blockchain's inflation mechanism, which currently distributes new XLM tokens at 1% annually to accounts receiving over 0.05% of votes from holders with at least 100 XLM. The foundation argues inflation no longer effectively supports ecosystem projects, as only a few qualify for it and voters essentially make donations rather than receive meaningful rewards. The proposal has been implemented in Stellar Core v12, and the foundation is encouraging validators to vote for its acceptance, though the decision ultimately rests with the network's validator set.