SDF Blog

Introducing the Stellar Community Staking Competition

A new reward plan has been added to the well-known inflation pool system - the Community Staking Competition. In addition to the payouts generated by the inflation mechanism, a time-based staking algorithm has been implemented into the Stellar Ledger.

This proposal was first made in 2018 when the cryptocurrency market started a rapid decline. Community members approached the Stellar Foundation Board with a strategy focused on keeping and enlarging the user base, while rewarding old and new users with Lumens reserved initially for other purposes.

The board made a commitment to launch a Staking Competition - a time-limited reward plan for individual users. A manual process has been added to the Ledger in such a way as to distribute Lumens directly to Community members' accounts.

The Stellar Community Staking Competition can be accessed with the Account Viewer Tool, starting March 21st, 2023. Users have the option to claim as much as 25% more Lumens based on current account balances. The Stellar Ledger records the account balance, estimates a reward percentage, and distributes Lumens automatically. The bonus cannot be used again to claim more Lumens, as a certain sequence mention is applied in the Ledger, limiting abuse and ensuring each user's stake.

For the Staking Competition, a total of 6 billion XLM have been moved from the Stellar Development Foundation inflation accounts. As the program is limited to a 30-day period, if the reserve is not met at the end of the 30 days, all remaining Lumens will be redirected back to the Foundation's reserve accounts.

Join the Community Staking Competition

For compatibility and security reasons we recommend using a Ledger or Trezor hardware wallet.

  • Access Stellar Account Viewer
  • The dashboard will provide a staking balance and options
  • Activate the staking option

  • The estimated XLM will be immediately sent to your Stellar account.

    NOTE: If you are holding your Lumens on an exchange, you will need to withdraw them to a personal wallet in order to use the Account Viewer Tool. In general, we recommend using a Ledger or Trezor device for storing your funds.

    Find out more

    We believe in community-based ownership of the Stellar network. Feel free to ask us questions about the lumen distribution program.

    Find answers to frequently asked questions in our FAQ page.

    Join the conversation at:

    And if you’re a developer interested in building applications on Stellar, explore our documentation.

    Subscribe to the monthly roundup

    More articles

    News and insights from SDF