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Stellar Development Foundation Publishes Future Spendings Plans For The Next Years

ยท in Breaking, Crypto News
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

Stellar (XLM) has just informed which are the funds that it will be using in the coming years. The Stellar Development Foundation (SDF) published a mandate in which they explain which are their plans in terms of spending during the next decade.

Stellar Sets Aside Funds For Development

According to the Mandate published by the SDF, they have detailed which ledger addresses hold funds for development and promotion and how they will be used in the coming years. This will increase transparency in the community and it will help the whole ecosystem move forward with a wide range of projects.

The SDF will be using lumens from the Direct Development fund in order to develop and advocate for Stellar. At the moment, the SDF has added 3 billion XLM on Escrow for January 1 2021, 2022 and 2023. That means that there are 9 billion XLM ready to be used in the next three years for development.

As per the SDF, the main goal is to lead the development of Stellar and Horizon while formulating policies around their blockchains, engaging with regulators and contacting policymakers. Moreover, the funds will be used to improve the network’s technology and its business, foster individual participation among the XLM community and promote the Stellar network to new participants all around the world.

In order to fund these efforts, the SDF will be selling the funds through different exchanges or OTC markets.

On the matter, they commented:

“To fund the above efforts (and other development or operational needs that may arise,) SDF sells its lumens using public exchanges like Kraken and Coinbase and occasionally through OTC markets. The cash we generate pays for employee salaries, as well as for things like rent, overhead, travel, and server costs.”

It is worth mentioning that most SDF employees also receive grants in XLM tokens. These grants are also coming from the Direct Development fund.

In order to attract a larger number of individuals, the SDF has also set aside 6 billion XLM. The goal is to expand the ecosystem through marketing campaigns and in-app distribution. These distributions initiatives are the successor of the airdrop programs that the company followed last years.

The SDF informed that they want to use the funds in the next ten years in a transparent and clear way. This would help the whole network expand, attract a larger number of users and help the whole cryptocurrency market.

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