We come across this question daily “how to mine Stellar Lumens?” Actually Stellar Lumens mining is not possible. It’s similar to ripple. At the time of launch in 2014, 100 billion stellar were created. It’s based on consensus algorithm. It has fixed units which are controlled by the network, unlike other coins. Ripple and stellar don’t have a mining mechanism.
So, answer to the question of how to mine for stellar lumens is simple: Stellar Lumens coin mining is not possible. The only stellar creation mechanism is inflation.
Distribution of Stellar Lumens:
Stellar Lumens mining pool:
It is possible to get Stellar Lumens today without buying from exchanges and other markets through inflation policy where new lumens are generated and added to current ones at a fixed rate of 1% per year. They are distributed to the holder of digital currency on a voting process through inflation pool of stellar lumens. There is a transaction fee of 0.00001XLM which is charged for every transaction to avoid DDoS attacks. To qualify for extra lumens you need to get at least 0.05% of the votes cast.
In short, you need to hold Lumens In your account if you want to earn new Lumens every year. You can then wait for the inflation of 1% to join inflation pool and hope to get at least 0.05% of the votes for XLM to be distributed into your account.
Stellar Lumens cloud mining:
Cloud mining is a process of utilizing remote datacenter with shared processing power. It enables users to mine coins without managing hardware. The customer only needs to register and purchase stellar lumens mining contracts.
In cloud mining instead of leasing a dedicated server, we need to install a mining software on the machine. We can either lease the Physical mining server or a Virtual private server but unfortunately, stellar lumens do not support cloud mining.
Why Stellar Lumens?
There are some reasons for preferring stellar lumens
- Low Price per Coin: Bitcoin, Ethereum, and Litecoin have very high prices. While stellar lumen price is below half a dollar which is very affordable. Stellar lumen potential for adoption is high. XLM gives the majority of Coin base investors the opportunity to buy into a high max supply, low priced coin.
- Charge a minor operation fee: A fee of 0.00001 XLM is charged for each operation in a transaction. The fee can discourage DDoS attacks which occur when people try to flood the network with meaningless transactions.
- Entry pass: If you want to use you need to hold at least 20 XLM to use the stellar network.
- Exchange currencies: XLM can act as a universal unit of exchange for transferring currencies.
- Max supply: High circulating supply of XLM will keep the price of coin low. It appeals the investors to own a large number of coins. It makes transactions easy. Because instead of using the entire network like bitcoin it uses quorum which is the part of the whole pool. Which makes transactions so fast.
Stellar coin mining is not possible. If you want to mine some coins then you should go for other coins like bitcoin. Stellar lumens mining does not exist. Stellar can only be created through inflation pool. You have to hold coins to be in stellar lumens race.