What is Stellar Lumens (XLM)?

Stellar Lumens (XLM) is a cryptocurrency that wants to become a decentralized platform for many operations in the financial sector.
Stellar Lumens XLM

Let's discover the history of Stellar Lumens (XLM)

The Stellar project begins in 2014 under the impetus of its founders Jed McCaleb and Joyce Kim. The former is also the co-founder of Ripple. This explains the fact that the Stellar Lumens protocol is based on the Ripple protocol.

While Ripple targets financial institutions (banks, companies…), Stellar Lumens is more aimed at individuals. Thus, Ripple focuses on exchanges of large sums while Stellar prefers to bet on smaller sums exchanges.

In 2015, the token name was changed from Stellar to Lumen to distinguish the Stellar network from Stellar.org, the non-profit organization that contributes to the development of the network.

Originally, the Stellar network had 105 billion XLM tokens. However, on November 4, 2019, the total supply of XLM tokens was reduced by more than half. The total supply of Cryptocurrency is, therefore, currently 50 billion tokens.

There is no mining. No new XLM tokens will be created. Everything has been pre-mined. The distribution of Stellar Lumens was as follows:

  • 50% distributed to individuals: a small amount of lumens (50-300 XLM) is given to each individual who registers through an invitation link. It is possible to obtain an invitation link through a Stellar partner or attend one of their meetings.
  • 25% are (or will be) donated to partners: lumens will be donated to businesses, governments, institutions, or non-profit organizations that contribute to the growth and adoption of the ecosystem.
  • 20% were donated to BTC and XRP holders: Stellar.org distributed lumens to Bitcoin and XRP holders (19% for Bitcoin holders and 1% for XRP holders). This contest was held in two phases: one phase in October 2016 and the other in August 2017.
  • 5% reserved for Stellar.org operational expenses

What is Stellar Lumens (XLM)?

Stellar wants to become a decentralized platform for many operations in the financial sector. They define themselves as an open and distributed payment infrastructure, based on the principle that the international community needs a “global financial network open to all“. Stellar Lumens will connect individuals, institutions, and payment systems through their platform to meet this need.

This project aims to have an easily accessible platform that offers the possibility to make micro-payments and international transfers quickly, reliably, and with minimal cost. The network can support up to 1000 transactions per second. On average, a transaction is validated after 3 seconds.

Besides, Stellar integrates a decentralized exchange used to trade any currency or asset. Thus, users can place buy and sell orders to buy various currencies on a public ledger.

It is also possible to send any currency one holds to a different person in another currency through this decentralized exchange. For example, Mark wants to send dollars to Justine. He has Bitcoins and wants to use them to send dollars to Justine. Stellar will automatically convert his BTCs into USD with the best exchange rate.

Each transaction has a negligible fees of 0.00001 lumens. These fees exist only to prevent users with malicious intentions from saturating the network (DDoS attack). Similarly, the Stellar network requires that all accounts have a minimum balance of 0.5 lumens. This ensures that only active accounts are kept.

SDF (Stellar Foundation Development) aims to develop the ecosystem and make Stellar a worldwide payment method!
In particular, they should invest in certain companies via their crypto: XLM.

How does the Stellar Lumens (XLM) crypto work?

Stellar is a decentralized network, comprising many servers scattered worldwide, distributing their power to the network. This network records all system transactions, whether individuals or professionals make them. A copy of this network (shared registry) exists in all Stellar servers.


server stellar xlm


Any individual can own a Stellar server. The more servers the network contains, the more robust it is. The servers communicate with each other to verify and synchronize transactions. It is a consensus-based protocol called the Stellar Consensus Protocol (SCP).

Stellar needs existing institutions to guarantee deposits and withdrawals (like banks…). On the Stellar network, these “institutions” are called Anchors. They act as gateways between a specific currency (EUR, YEN, USD…) and the Stellar network. Besides, they allow keeping an order book updated in real-time.

Thus, you can deposit dollars to exchange them for Yen and send them to your friend in China. The Stellar network will automatically convert these currencies at the best current rate.

Let’s develop a little bit of this concept of anchors. These are the entities that people trust to store their savings and send their currencies (credit emissions) to the Stellar network. They are, as mentioned above, gateways between the different digital currencies integrated into the network. All monetary transactions (except Lumens transactions) on the Stellar network are in the form of credits issued by the anchors.

The Lumen is the name of the cryptocurrency associated with the Stellar network. Lumen tokens allow you to pay transaction fees and facilitate transactions between several currencies.

Some practical cases

Reduce the cost of micro-payments

Deloitte is using a prototype based on the Stellar network that can reduce transaction costs by up to 40%. In addition, these transactions are completed in 5 seconds on average.

Discover a demo

Make mobile payments compatible between different platforms and operators

In cooperation with Parkway, Stellar connects the 5 main mobile operators allowing their customers to send money to each other.

How to buy the Stellar Lumens (XLM) cryptocurrency?

Buy Stellar with eToro

The first platform is the eToro broker. It allows you to buy the Stellar token and trade the Stellar via CFD within a simple platform, particularly appreciated by beginners.

File:Etoro logo.svg - Wikimedia Commons

Using Binance to Buy Stellar

Launched in 2017, Binance is one of the most popular crypto exchanges in terms of trading volume. As a reference for crypto/crypto exchanges (more than 180 crypto-currencies available for trading), Binance has created a fiat gateway service to offer more options to purchase crypto-currencies directly with cash currencies (euros, dollars…) via bank transfer or credit card.

The most popular market pairs (including XLM) on Binance are :


As you can see, to get XLM on Binance, you will first need to deposit cryptocurrencies like Bitcoin or Ethereum or buy stablecoins or other cryptocurrencies supported by Binance that you can then exchange for XLM.

👉 Read: Binance Tutorial

File:Binance logo.svg - Wikimedia Commons

Buy Stellar with Kraken

Kraken is one of the oldest crypto exchanges, it was launched in 2011. It is also one of the most appreciated and recognized in the industry – especially in Europe.

Kraken supports a wide range of fiat currencies and cryptocurrencies on its platform, which is very popular with users. There are also several different possible pairs: fiat/crypto, crypto/crypto, and fiat/fiat. On Kraken, it is possible to buy XLM against USD or Bitcoin.

👉 Read more: Kraken Tutorial

How to store your Stellar Lumens (XLM) corners?

There is a wide choice of wallets to store your XLM tokens.

Wallets on computers allow you to encrypt your secret key.

Here are different Stellar wallets on computer :

It is also possible to have a Stellar wallet on mobile :

You also have the possibility to use web wallets:

Finally, you can access your Stellar Lumens using a lightweight wallet at https://www.stellar.org/account-viewer/.

In order to store your Stellar Lumens safely, we advise you to opt for a hardware wallet. These wallets take the form of secure USB keys for encryption. You will be able to store your tokens directly at home in a digital bank safe.

The 2 safest electronic wallets to store your XLM corners are the Ledger Nano X and the Trezor.

Ledger wallet

Ledger Wallets

Ledger is a French company that offers a wide range of electronic wallets to store and secure cryptocurrencies. Ledger supports the storage of Bitcoin Cash.


Trezor Wallets

The Trezor wallet comes in the form of a USB key on which it is possible to store cryptocurrencies such as Bitcoin Cash.

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The information above contains information on the cryptocurrency market, which is associated with high risks. These materials are presented for informational purposes only and in no way should be construed as a recommendation for the purchase or sale of the assets. Any person considering trading digital assets should seek independent advice on the suitability of any particular digital asset.

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