Stellar has announced a partnership with popular crypto wallet provider Blockchain on Tuesday, saying that they will be giving $125 million worth of Stellar lumens (XLM) to their customers.
They are to begin distributing the cryptocurrency this week to all Blockchain users who sign up. They are hoping the large customer-base of the company will help the coin compete with popular cryptos such as XRP and ETH. Airdropping coins like this has become a popular way to promote coins and are an attractive alternative to the ICO process. This will be the biggest airdrop in the history of cryptocurrencies.
According to Stellar co-founder Jed McCaleb:
We believe that airdrops are central to creating a more inclusive digital economy. Giving away lumens for free is an invitation to communities to design the services they need. By working with Blockchain to increase the availability and active use of lumens on the network, we will increase the network’s utility by many orders of magnitude.
Blockchain is also partnering with other initiatives such as charitywater.org, code.org and Network for Good. They are to release details of these initiatives in the coming weeks and it is hoped that these will help to further the adoption of the stellar lumens.
Stellar originally created 100 billion lumens, 95 billion of which will be distributed by Stellar Development Foundation as follows:
- 50% via the Direct Sign-up Program
- 25% via the Partnership Program
- 20% via the Bitcoin Program
- The remaining 5% will be held to support operational costs
The airdrop will move 490 million lumens from Stellar Development Foundation World Giveaway wallet, which holds 44.6 billion tokens and distribute them among millions of people. This represents 2.6% of lumens in circulation and only 0.47% of the total supply. This raises questions about the effectiveness of the move to help distribute the coins.