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What is Stellar Lumens and How to Mine it?

What is Stellar Lumens and How to Mine it

Introduction

The stellar network is an open-source network dedicated to a payment system that supports global transactions. A stellar network was formed with a rationale to offer a consolidated system. The system was designed to support global financial transactions through a single ecosystem. Its payment network supports traditional money like USD, EUROS, as well as cryptocurrencies like Bitcoins, Ethereum, and others. Its native currency, Lumens, known by the symbol XLM, fuels the ecosystem of the network. According to XLM Price Prediction 2025, Stellar is set to touch the $3 mark by the year 2025. While the other business insiders suggest that the price will fluctuate between $1 and $1.14 till 2025.

Mining Stellar Lumens

Stellar lumens cannot be mined as they were mined at their launch. However, there are two occasions when 1% of XLM can be created as per the requirement; the first occasion being covering for the lost tokens and the second occasion being regaining control over the economy due to inflation. At the time of its launch, 100 billion XLM were created, which, in the latter part of 2019, were reduced to 50 billion as the Stellar community decided to do away with the inflation mechanism.

Out of these 50 billion lumens, 20 billion are in circulation on the global payment network, while the other 30 billion are reserved by the Stellar Development Foundation (SDF). SDF is an NGO formed exclusively to support the Stellar network. The main aim is to channel them towards the development of Stellar. Stellar’s highly scalable network supports 1000 transactions per second. Moreover, its economical transaction fee of $0.00001 makes it a popular global payments platform. Stellar Lumens follows a decentralized network, and hence the network nodes are distributed on the open network, as they reach a common consensus through Stellar Consensus Protocol (SCP). This element ensures the higher scalability of Stellar’s network. Also, the order book enables the cross-functioning of multiple traditional and digital currencies.

Conclusion

Steller will reach anywhere between $1 to $1.14 or might even reach $3 by the 2025 mark as per the XLM Price prediction 2025, if the market is extremely bullish. Crypto analysts also suggest that the XLM is set to climb the ranking based on current market capitalization, which is $41.13 billion. XLM’s scalability and low transaction fees have made it a popular crypto brand and the most chosen payments network across the globe.

FAQ

How Long Does it Take to Mine Stellar?

An Application-Specific Integrated Circuit (ASIC) device would be an ideal device to help mine Stellar. The mining of Stellar will depend on this device, processing hash rates.  ASIC devices provide the fastest results in the computation of hash rates. So, the rate at which the XML will be mined will completely depend on the ASCI device.

How Much Does it Cost to Mine 1 Stellar?

This question has a subjective answer as the mining cost varies as per the power consumption cost. ASIC would be the most recommended device that delivers faster results with higher efficiency and lower costs.

How Profitable Is Stellar Mining?

Many factors play a role in determining the profit, like taxes applicable in respective GEOs, cost of power consumed, cost of the device, etc. Miners can arrive at approximate figures using XLM’s profitability calculator that is freely available online.

Timothy Cox
About author

Timothy Cox recently started working with FinanceKnown as a news writer. He covers news stories covering from breaking news, finance, business and economy. He holds master’s degree in journalism. He has a passion for film, news and photography. In his free time, he travels a lot with a camera.
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