In 2009 Cryptocurrencies such as Digicash, bit gold, b-money and e-cash became a reality. The numerous opportunities with virtual currency became apparent to people once bitcoin achieved decentralization. The potential for disrupting several industries was had by the source, blockchain technology. Jed McCaleb was among the early programmers and business minds who were pioneers in the area of cryptocurrency.
Emerging crpto projects and ICOs caused the original idea of connecting people worldwide and decreasing fees to be lost. Jed McCaleb’s guidance led to the creation of Stellar during 2014, which allowed for a financial platform benefiting the poor as well as the rich. The goal was to form an organization that was non-profit to fill common financial needs while providing various options to its users.
Jed McCaleb the co-founder and CTO officially introduced Stellar Development Fund (SDF) during June of 2014. Philanthropic activities were what the focus of the project was to be. There were not any profits for the investors or employees from the organization which does not have stock. People can send and receive payments with the open source code of the Stellar network that is a decentralized exchange.
As per Github.com, there were one billion Stellars now known as Lumens (XLM) originally created. They were divided to various outlets with new XLM being added each year using a one percent rate of inflation. A weekly system of voting would be used to distribute the XLM to users. Online payment processor Stripe funded Stellar with three million dollars in exchange for two percent of the Lumens available. SDF has distributed eighteen billion XLM as directed by the Lumen Distribution Mandate.
It is mostly free to acquire XLM which is what separates Lumens from the rest of the cryptocurrencies. This reinforces the social causes that are the company’s motive. You have to look at Jed McCaleb to understand the generosity of Stellar.
The restrictions that financial institutions such as banks put on people were a problem that Jed McCaleb saw and wanted to fix. He knew there wasn’t progress being seen in developing countries and he wanted to do something about it.