- Get Started
- Stellar Attachment Convention
- Compliance Protocol
- Add Stellar To Your Exchange
- Hardware Requirements
- Issuing Assets
- Known Validators
- Build Stellar Apps
- Contribution Guide
The Stellar distributed 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 that hold a balance of at least 100 XLM.
Using the set options operation, every account selects another account as its inflation destination, or nominee to receive new currency. The inflation destination will persist until changed with another set options operation.
Voting is weighted according to the number of lumens the voting account holds. For example, if account A has 1200 lumens and sets its inflation destination to B, the network counts 1200 votes for B. For an account’s vote to count at all, it has to hold a balance of at least 100 XLM. Accounts with less the 100 XLM are not eligible to participate in the inflation vote.
The distribution of new lumens is limited to once a week. Inflation is run in response to an inflation operation that anyone can submit to the network. This operation will fail if the inflation sequence number isn’t one after the last sequence number. It will also fail if (sequence number * 1 week) of time hasn’t elapsed since the network start date.
Each time inflation is run, the lumens used to pay transaction fees since the last voting round are also included in the total lumens distributed.
When inflation is run, nodes carry out the following algorithm:
inflation poolby (number of lumens in existence)*(weekly inflation rate) + fee pool.
MIN_VOTEby (number of lumens in existence)*.0005. This is .05% of the existing lumens, the minimum amount of votes needed to get any part of the inflation pool.
MIN_VOTE. These accounts are the winners.