Irakli Maisuradze
Jul 21 · 4 min read

💰 Hold XLM? You could be compounding 1% per year, here’s how:

Stellar Lumens is a cryptocurrency, which follows a concept of inflation. Because all of the coins are already mined (100% pre-mine) devs need to distribute leftover coins to the community. So they set the inflation rate at 1% per year. Not many people know about this, but those who do, earn XLM for free, every week, without doing anything and in a compounded way. What’s better? It’s completely secure. Holders don’t need to share their private key or move funds somewhere else!

Stellar has a concept of inflation, like many fiat currencies. The number of Lumens, in circulation, grows at a rate of 1% per year, or 0.02% per week. At the current rate that adds about 20M Lumens to the network every week. Stellar’s method of distribution for these newly minted Lumens is via Inflation Destination Accounts. These are addresses that can be voted for by individual accounts. You can vote for any account, even your own, but the only way to obtain any part of the inflation Lumens is to reach a minimum threshold set by Stellar, that is about 52M XLM.

But, there is another way, called Inflation pools, where community unites their voting power and get their share of Lumens, no matter how many XLM they hodl.

How To Get Free Lumens

Step 1: Select your pool

By selecting a pool, you are voting for that pool. Right now, there are some popular Lumen pools:

Which one to choose? You should do your research. But in the end, you will still receive Lumens.

Step 2: Download the wallet

Once you have selected the pool, you will be ready to cast your vote. For this, you will need your wallet, your wallet address and a private key. (Choose a wallet over this Stellar recommended list of trusted wallets).

Step 3: Vote for pool

Once you get Inflation Destination address, you are ready for voting. For example, this address is for Lumenaut Pool:


And this address for XLMPOOL:


Once you decide on your pool, let’s cast our votes!

  1. Go to Stellar Laboratory and switch to public network:

2. Click on the tab “Transaction Builder”:

3. Paste your Public Key in “Source Account”:

4. Click the blue button “Fetch next sequence number for account starting with…”:

5. Scroll down the page to “Operation Type”, click the dropdown menu and choose “Set Options”:

6. Paste Inflation Pool address in the “Inflation Destination”:

7. Scroll down the page and click the blue button “Sign in Transaction Signer”:

8. You will be redirected to a new page, scroll down and paste your Secret Key in “Add Signer”. Alternatively, if you use a hardware wallet then connect the device, open the Stellar app, click the blue button “Sign with Default BIP path” and approve the transaction on the device:

9. Scroll down and click the blue button “Submit to Post Transaction endpoint”:

10. You will be redirected to a new page, click the blue button “Submit”:

11. You will receive a JSON response confirming your vote and you are done!

Congrats, you have joined the club 😎😎

***The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial, legal, or tax advice. The content of this article is solely the opinions of the author who is not a licensed financial advisor or registered investment advisor. Purchasing cryptocurrencies poses a considerable risk of loss. The author does not guarantee any particular outcome. Past performance does not indicate future results. This is not an offer to sell securities. Never invest more than you can afford to lose. You should consult with your professional advisors before purchasing any cryptocurrencies.***


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Irakli Maisuradze

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Welcome to FutureConomy, where you learn to manage and grow your finances in a smarter and faster way

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