Mendel Bakaleynik

@mendelbak

StellarPort: Lumen Giveaway (10K XLM) and How Inflation Destination Works on the Stellar Network

StellarPort: The Stellar Network exchange is launching a promotional giveaway

StellarPort, the Stellar Network decentralized exchange, just launched their new advertising campaign. It’s a lottery based givaway for a minimum total of 10,000 XLM (Lumen)!

StellarPort will hold their new Lumen Giveaway every Tuesday. If there is no winner the jackpot will roll over to the next week’s prize.

There are 4 winners per week, dividing up the 10,000 XLM between the different winners. The prizes are as follows:

  • Jackpot: 5,000 XLM, plus 50% of StellarPort’s weekly inflation payment*, plus any rollover from the previous week.
  • 1st Place: 3,000 XLM.
  • 2nd Place: 1,500 XLM.
  • 3rd Place: 500 XLM.

Your chance to win is based on the amount of XLM currently held in your wallet as well as your trade volume on StellarPort.

*What is Inflation Destination?

The Stellar Network uses a fixed 1% inflation scheme that adds new Lumen to the network weekly. It also adds the transaction fees that the Stellar network charges to that distribution pool. The network automatically awards those new Lumen to any account that has other accounts “vote” for it. The act of “voting” for another account to receive a portion of that pool of new Lumen is called “setting your inflation destination”.

Votes are counted based on the amount of Lumen that the voting account holds. An account with 1 Lumen, for instance, would receive 1 vote while an account with 2 Lumen would have 2 votes, et cetera…

In order for an account, such as StellarPort’s, to receive a portion of the inflation pool, it must receive votes from accounts that hold a combined total of at least .05% of all Lumen in existence. Any destination account that overcomes that 0.5% barrier during the voting period is awarded the newly injected Lumen in accordance with the percentage of votes it received. For instance, if people holding 2% of all Lumen pointed their Inflation Destination pointers at your account, you would receive 2% of the inflation pool.

All unallocated Lumen returns to the pool for distribution the next week.

StellarPort requires you to set their account as your Inflation Destination in order to enroll in their Giveaway, which is how StellarPort tries to cover their Giveaway expenses.

Thanks for reading and good luck on that Stellar Giveaway!

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Disclaimers:

StellarPort is not a member of the Stellar Foundation.

Additionally, I currently occupy a contracting position at StellarPort as a Developer and Marketer.

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