Binance Discontinues Support for Stellar (XLM) Staking

Siamak Masnavi

On Tuesday (October 29), crypto exchange Binance had some difficult news to share with those Binance who are XLM HODLers.

Binance's blog post stated that it was being forced to discontinue the Stellar (XLM) staking support it had first announced on July 18.

The reason for this is that a recent update to the Stellar Protocol disabled "inflation" for version 12 and above. Stellar Development Foundation (SDF) proposed disabling inflation back on September 30. 

SDF's blog post said that it was "a good idea to disable the current inflation mechanism for the following reasons:

  • Inflation isn’t helping apps built on the Stellar platform.
  • Inflation leads to scalability issues.

Binance says that XLM staking rewards earned up until October 28 (when the upgrade is due to take place) will be distributed to users and that users will still be receiving "the October XLM distribution in the first 5 days of November."

Finally, Binance wants users to know that its Staking platform will continue to support Algorand (ALGO), Fetch.AI (FET), Elrond (ERD), Harmony (ONE), Komodo (KMD), NEO, Ontology (ONT), Qtum (QTUM), Stratis (STRAT), TRON (TRX), and Vechain (VET).

Featured Image Courtesy of Binance