Stellar Lumens is a cryptocurrency which gives you 1% annual return on your current funds, as well as a part of the lumens used as transaction cost weekly. While it’s not a great deal of money coming in, it still benefits you and each lumen you hold should allow you to pay for 19 transactions.

The annual 1% return is spread across all the weeks you hold Lumens so you get a deposit of the stake every week, which should be about 0.02%.

In order for this process to work you have to set your inflation pool, which is a process that depends on the wallet you are using. You can use different inflation pools, which means your wallet is not the only thing that will give you lumens back.

Short explanation:

By owning Stellar Lumens you are a staker in the cryptocurrency, you receive an annual return of about 1%, and you also receive a little extra to compensate for your transaction fees, like explained in the article.

In order to receive this you need to set your inflation which means to receive a sort of votes from other accounts in the network.

Basically, you have to vote on another account to select it as an inflation destination or nominee to select currency. The voting is done by the amount of Lumens you hold.

So let’s say person A wants to vote on person B, if you hold 50 Lumens you will vote account B up by 50 votes, if someone else votes with 20 on B, B will have 70 votes, etc… Obviously, whales or big amount holders will have much more Lumens so they can easily vote another account by much more.

The Lumens used in the transaction of voting will also be distributed in the weekly stake payment, which means when you vote you receive a part back.

When the weekly pool ends, the % of votes you hold will allow you to receive the % of proper Lumens according to your earned, I think, voting %.

I’m not exactly sure how much or what % you pay to vote on the inflation pool and I think not everyone receives Lumens back. If you own a very small % of Lumens in that specific pool, like actually really small, you don’t get anything back.

You can check a more detailed description and more info over this link.

You can learn how to set up your wallet from this link.

If you enjoyed this little tip perhaps consider checking out How to transfer cryptocurrency out of Coinbase without paying fees.

Happy Lumens gains