Stellar
Crypto Overview
Overview
Stellar is an open-source payment network launched in 2014 by Jed McCaleb and the Stellar Development Foundation. The network's native cryptocurrency is called Lumen (XLM).
Intended Utility
Stellar's primary purpose is to facilitate cross-border payments and serve as a decentralized exchange platform. It aims to connect financial institutions, payment systems, and individuals to enable low-cost, instant transfers of value across borders.
Actual Utility
The network is actively used for its intended purposes, with notable partnerships including MoneyGram, Circle, and various financial institutions. The Stellar network processes millions of transactions monthly, primarily for cross-border payments and asset transfers.
Token Distribution and Governance
The Stellar Development Foundation (SDF) initially retained 85% of the XLM supply but has committed to a transparent distribution schedule. Regular reports are published detailing token usage and distribution. The foundation has demonstrated commitment to development over marketing, with substantial resources allocated to technical improvements and ecosystem growth.
Technical Implementation
Stellar uses a unique consensus mechanism called the Stellar Consensus Protocol (SCP), which enables fast, efficient, and environmentally friendly transaction processing. The network supports asset tokenization and implements smart contracts without introducing interest-bearing mechanisms.
Current Usage
The platform primarily serves its intended purpose as a payment and transfer network. While trading activity exists on exchanges, this represents a legitimate secondary market for the utility token rather than its primary use case.
Crypto Impact
To assign a comfort level investing in Stellar from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Stellar.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.