Stellar
Crypto Overview
Understanding Intended Utility
Stellar was created in 2014 as a payment technology that aims to connect financial institutions and provide low-cost financial services to the unbanked and underbanked populations. The network is designed to facilitate cross-border transactions and serve as a bridge between different currencies, both fiat and digital.
Business Model Assessment
The Stellar Development Foundation (SDF) operates as a non-profit organization, focusing on developing the network's infrastructure and promoting financial inclusion. The network's native token, XLM, serves as a bridge currency for transactions and helps prevent spam by requiring small amounts of XLM for transaction fees.
Actual Utility Analysis
Stellar has established significant partnerships with financial institutions and technology companies. Notable collaborations include MoneyGram, IBM, and various central banks exploring CBDCs. The network processes millions of transactions monthly, demonstrating genuine utility in cross-border payments and remittances.
Development Activity
The platform maintains active development with regular protocol upgrades and improvements. The most recent major upgrade, Protocol 19, enhanced network efficiency and scalability. GitHub repositories show consistent developer activity and community contributions.
Token Distribution
The Stellar Development Foundation holds approximately 30% of the total XLM supply, which is used for development, partnerships, and ecosystem growth. The foundation maintains transparent reporting of token usage and has a structured timeline for distribution.
Revenue Model
The network operates without interest-based mechanisms. Transaction fees are minimal and are burned rather than distributed to any party. The consensus mechanism, the Stellar Consensus Protocol (SCP), does not involve interest-bearing staking.
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.