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by cryptobeanbaby 2879 days ago
XLM was "premined" (instantly generated for free) and distributed to the established "wealthy" userbase in an effort to get them to tell outsiders to buy in.

It's like some evolution of Multi-Level-Marketing meets penny stock.
1 comments
pouta 2879 days ago
Could you share sources? I would love to know more
link
cryptobeanbaby 2879 days ago
https://www.stellar.org/blog/bitcoin-claim-lumens-2/

https://www.stellar.org/about/mandate/

  Lumen Distribution
>At the genesis of the Stellar Network, 100 billion lumens (XLM) were created as specified in the protocol. As part of its custodial mandate, SDF is entrusted to oversee that the vast majority, 95 billion, of the lumens are distributed to the world.

>SDF manages the execution of lumen distribution, with oversight and direction provided by SDF’s Expansion Board. The initial lumens held by SDF are required to be distributed to the world in the following manner:

    50% for distribution via the Direct Sign-up Program
    25% for distribution via the Partnership Program
    20% for distribution via the Bitcoin Program
    5% held by SDF to support operational costs
Funny part of the protocol is that the voting power goes to the rich, and they just vote themselves all the new money that's generated:

>The Stellar Network has a built-in, fixed, nominal inflation mechanism. New lumens are added to the network at the rate of 1% each year. Each week, the protocol distributes these lumens to any account that gets over .05% of the “votes” from other accounts in the network.

The cryptocoin community has an established Modus operandi.

Write a piece of software that generates a supply of database tokens, and write the rules in such a way that they gain majority ownership and distribute a large portion of the supply to a few early "whales". These early users then act in every way they can to spread promotional promises and propaganda to the public in an attempt to convince people they too can become an oligarch of this token system that will surely be the future (as they sell their tokens for fiat) and all they need to do is "hodl" the supply and wait of course.

link