Stellar (XLM) Consensus Mechanism and the "Mining" Misconception
Stellar (XLM) is the native cryptocurrency of the Stellar network, designed to facilitate fast, low-cost cross-border payments and digital asset issuance. Unlike cryptocurrencies such as Bitcoin, which use a Proof-of-Work (PoW) mechanism, the Stellar network does not rely on "mining" to create new XLM tokens. At the core of Stellar is its unique Stellar Consensus Protocol (SCP), a Proof-of-Agreement (PoA) consensus mechanism based on the Federated Byzantine Agreement (FBA).
This means that transaction validation on the Stellar network is performed by a group of mutually trusted nodes (called "quorum slices"), rather than by competing for accounting rights by solving complex mathematical problems. Therefore, users cannot acquire XLM through traditional CPU or GPU "mining." All XLM tokens were pre-issued when the Stellar network was launched.
XLM Tokenomics and Supply
The Stellar network initially issued 100 billion XLM. For the first five years of the network's operation, the supply of XLM increased by 1% annually to account for inflation. However, on October 28, 2019, through a vote by network validators, the Stellar network's inflation mechanism was officially terminated. Subsequently, the Stellar Development Foundation (SDF) burned approximately 50% of the XLM supply, fixing the total supply at 50 billion XLM.
As of July 9, 2026, approximately 27 billion XLM are in circulation, with the remaining portion held by the Stellar Development Foundation to fund network development and ecosystem building. This fixed supply and non-mining mechanism fundamentally differentiate XLM's acquisition methods from PoW cryptocurrencies.
How to Acquire Stellar (XLM)
Although XLM cannot be acquired through traditional mining, users still have several ways to obtain this digital asset:
- Direct Purchase: This is the most direct and common method. Users can purchase XLM on major global cryptocurrency exchanges such as OKX, Binance, Coinbase, Kraken, etc. On these platforms, users can directly exchange fiat currency or other cryptocurrencies for XLM.
- Indirect "Mining": Some third-party platforms (such as unMineable) allow users to mine other cryptocurrencies that support PoW algorithms (e.g., Ethereum, Dogecoin), and these platforms will then automatically convert the mining rewards into XLM and pay them to the users. This is not direct XLM mining, but rather a service that converts other mining earnings into XLM.
- Participate in Games and Activities: Some mobile games or online platforms offer XLM as rewards, such as PopStellar, Stellar AW – XLM Reward, Cryptocollide.com, Idle-empire.com, etc. By participating in tasks or games on these platforms, users have the opportunity to earn small amounts of XLM.
- Account Activation: Creating a new Stellar account typically requires a minimum reserve of at least 1 XLM to activate, which ensures the healthy operation of the network and prevents spam accounts.
The Stellar network, with its fast transaction settlement (averaging 2-5 seconds) and low costs (transaction fees of only 0.00001 XLM per transaction), demonstrates unique advantages in global payments and asset issuance. When considering acquiring XLM, users should fully understand its non-mining nature and conduct transactions through compliant channels. Users can check relevant progress and real-time market data on information platforms such as Svmuu.
