This article explains the role of lumens (XLM), Stellar's native token, in the network's design. Lumens serve as a modest barrier to prevent spam and abuse while keeping the network accessible, with a minimum balance requirement of 1 lumen and transaction fees of 0.00001 XLM.
The article provides a comprehensive overview of Stellar lumens and their fundamental role in the Stellar network. It explains why lumens were introduced as a deterrent against spam and frivolous use of the ledger, while maintaining network accessibility. The piece covers the lumen supply mechanics, noting that 100 billion lumens were created at network launch, with an initial 1% annual inflation that was ended by community vote in October 2019. The supply was subsequently reduced to approximately 50 billion lumens, with nearly 20 billion in open markets and the Stellar Development Foundation retaining about 30 billion for network development. The article also discusses how lumens facilitate money movement between users as a medium of exchange and provides guidance on acquiring and storing lumens through exchanges and wallets.
