The Stellar Development Foundation backing the XLM blockchain has announced in a Blogspot that billions of dollars worth of XLM have been burned.

According to a tweet by the Stellar CEO, 55 billion Lumens (XLM) were burned.

The reason being that their previous holdings of about 85 billion XLM tokens in circulation were not in line with the network’s needs. The burned tokens amounted to approximately $3.5 billion when computed with the current price.

The current market capitalization of XLM is $1.6 billion. This is approximately twice the value of the burnt tokens.

He added that Stellar allocated 68 billion XLM lumens in their World and Partnership Giveaway programs. 50 billion XLM out of the 68 billion XLM allocated for the program were also burnt. The CEO believes the remaining tokens in circulation perfectly aligns with their mission.

Can this have any positive or negative effect on the price of XLM on the market? Let’s wait and see what happens next.

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