Stellar Blockchain Tokens

1. Lumens (XLM) – The Native Asset

• Description: XLM is the native cryptocurrency of the Stellar network.
• Role:
  • Used to pay transaction fees (minimal, ~0.00001 XLM per operation).
  • Acts as a bridge asset in decentralized exchanges (DEX) on Stellar.
  • Required as a reserve for new accounts (minimum balance).
• Issuer: The Stellar network itself (no central authority controls it).
• Supply: Fixed and capped (total supply is ~50 billion XLM, with a portion in circulation).

2. User-Issued Tokens (Custom Assets)

• Description: These are tokens created by users, businesses, or organizations on Stellar.
• Types:
  • Fiat-Pegged Tokens: Stablecoins like USDC, EURT, or other fiat-backed assets.
  • Utility Tokens: Used in specific applications (e.g., loyalty points, in-app currencies).
  • Security Tokens: Represent real-world assets (stocks, bonds, etc.) in a compliant manner.
• Key Features:
  • Trustlines Required: Users must “trust” the issuer to hold the asset (except for XLM).
  • Flexible Issuance: The issuer controls supply (can mint, burn, or freeze tokens).
  • Decentralized Exchange (DEX) Support: Tradable on Stellar’s built-in DEX.

Additional Notes

• Stellar’s Asset Model: Unlike Ethereum (ERC-20, ERC-721), Stellar does not have multiple token standards—all custom assets follow the same basic structure.
• Anchors: Many Stellar tokens are issued by “anchors” (regulated entities that facilitate fiat-to-crypto conversions).