Disclaimer: The information provided in this report is based on data gathered on August 10, 2024. The cryptocurrency market is highly volatile, and prices and other information may change rapidly.

Stellar (XLM) Research Report

Project Introduction and Brief Summary of Its Solutions and/or Products:

Stellar is an open-source, decentralized protocol for digital currency to fiat money low-cost transfers which allows cross-border transactions between any pair of currencies. The Stellar network’s native digital currency, Lumens (XLM), facilitates multi-currency transactions by serving as a bridge between different currencies, enabling quick and inexpensive conversions. Stellar’s mission is to create a more inclusive global financial system by making financial services accessible to everyone, particularly the unbanked and underbanked populations around the world.  

Project Release Date & Token Release Date:

• Project release date: July 31, 2014
• Token release date: August 1, 2014

Market Capitalization:

• $1,608,899,839

Current Price:

• $0.137192

Exchanges where the Cryptocurrency is Currently Listed:

• Binance
• Coinbase Exchange
• Kraken
• KuCoin
• Bitfinex
• …and many more

Competitors:

• Ripple (XRP)
• Cardano (ADA)
• Algorand (ALGO)
• EOS (EOS)
• Tron (TRX)

Use Cases:

• Remittances: Stellar enables fast and low-cost international remittances, making it a practical solution for sending money across borders.
• Micropayments: The network’s low transaction fees make it suitable for micropayments, allowing for small-value transactions that would be impractical on other blockchains.
• Mobile Money: Stellar can be integrated with mobile money platforms, providing access to financial services for users in regions with limited banking infrastructure.
• Tokenization of Assets: Stellar allows for the creation and trading of digital representations of real-world assets, such as stocks, bonds, and commodities.
• Decentralized Exchanges: Stellar’s built-in decentralized exchange enables the trading of various assets directly on the network without the need for intermediaries.

Technology:

• Stellar Consensus Protocol (SCP): A unique consensus mechanism that combines aspects of both federated and decentralized systems, allowing for fast transaction confirmation times and high scalability.
• Anchors: Entities that hold deposits and issue credits on the Stellar network, facilitating the conversion between fiat currencies and digital assets.
• Distributed Ledger: A shared, immutable record of all transactions on the network, ensuring transparency and security.

Smart Contracts and Audits:

• Stellar supports basic smart contracts through the use of multi-signature accounts and transaction sequences. However, it does not offer the same level of programmability as some other blockchains.
• Audits: Stellar has undergone several security audits by reputable firms, including Trail of Bits and NCC Group. The audit reports can be found on the Stellar Development Foundation’s website.

Investors or Partners Involved (Recent News):

• MoneyGram: In August 2023, Stellar announced a partnership with MoneyGram to enable cash-to-crypto payouts in select markets, leveraging the Stellar network for fast and low-cost transactions.
• Circle: In July 2023, Circle, the issuer of the USDC stablecoin, announced its integration with the Stellar network, allowing for faster and more efficient USDC transfers.
• Flutterwave: In June 2023, Flutterwave, a leading African payments technology company, announced its collaboration with Stellar to expand access to financial services in Africa.

Amount of Money Raised During the Presale Stage/ICO/Seed Rounds:

• Stellar did not conduct a traditional ICO. The Stellar Development Foundation (SDF) was initially funded by a donation of 2 billion XLM from Stripe. The SDF has also received funding from other organizations and individuals.

Token Distribution %:

• Initial:
  • SDF: 50%
  • Direct signup program: 25%
  • Bitcoin program: 20%
  • Partnership program: 5%
• Current:
  • SDF: ~20%
  • Circulating supply: ~80%

Detailed Token Economics and Use Cases, Including Detailed Breakdown of Token Vesting Schedule:

• Use Cases:
  • Transaction Fees: Each transaction on the Stellar network requires a small fee paid in XLM, preventing spam and incentivizing network validators.
  • Minimum Account Balance: Each account on the Stellar network must maintain a minimum balance of XLM, ensuring network efficiency and discouraging the creation of unnecessary accounts.
  • Asset Exchange: XLM is used as a bridge currency for facilitating cross-currency transactions on the Stellar network.
• Vesting Schedule:
  • The SDF’s initial allocation of 50% of the total XLM supply was subject to a vesting schedule, with a portion of the tokens released each year over a 10-year period.
  • The current vesting schedule can be found on the Stellar Development Foundation’s website.

Roadmap, Highlight the Milestones That Have Been Accomplished, and Those That Are Yet to Be Done:

• Accomplished Milestones:
  • Launch of the Stellar network: The initial launch of the Stellar network in 2014.
  • Development of the Stellar Consensus Protocol: The creation and implementation of the SCP consensus mechanism.
  • Partnerships and Integrations: Numerous partnerships with organizations like IBM, Deloitte, and MoneyGram, expanding the network’s reach and use cases.
• Upcoming Milestones:
  • Further scalability improvements: Ongoing efforts to enhance the network’s scalability to handle even higher transaction volumes.
  • Expansion of the Stellar ecosystem: Continued focus on fostering the growth of the Stellar ecosystem through developer tools, educational resources, and community initiatives.
  • Increased adoption: Driving broader adoption of the Stellar network for various use cases, including remittances, micropayments, and asset tokenization.

Team Members List and Brief Description:

• Jed McCaleb: Co-founder and Chief Architect, previously co-founded Ripple
• Denelle Dixon: CEO and Executive Director of the Stellar Development Foundation
• David Mazières: Chief Scientist, professor of Computer Science at Stanford University
• …and many other talented individuals contributing to the Stellar project

References:

• Stellar official website: https://www.stellar.org/
• Stellar Development Foundation: https://www.stellar.org/foundation
• Stellar Lumens (XLM) on CoinMarketCap: https://coinmarketcap.com/currencies/stellar/
• Stellar Lumens on CoinGecko: https://www.coingecko.com/en/coins/stellar

Note: The above information is based on publicly available data and research. It is always recommended to conduct your own due diligence before making any investment decisions.