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"The network has been initialized with a supply of 100 billion stellars. 5% will be used to fund operations of the nonprofit (its spending, including employee compensation, will be public), and the remaining 95% of the stellars will be distributed for free as quickly as we can manage."

IIRC Ripple's founders (including Jed) kept about 20% of XRP, and Ripple Labs kept about 25%, so only 5% is a lot better, but it's still a very centralized solution to distribution.

I do like that they're distributing 20% of the Stellars to BTC (and XRP) holders, though: https://www.stellar.org/about/mandate/#Bitcoin_program



We hope that it'll end up being considerably more even than Bitcoin distribution. One note is that of the 5%, 2% is currently held by Stripe. We're going to auction off most of our Stellars, and return the proceeds to the Foundation.

The Foundation is also being transparent about where the remaining stellars are going, namely: 2.5% to existing employees (https://www.stellar.org/about/governance/#Employee_Compensat...), and over time it'll distribute more stellars in order to raise funds (https://www.stellar.org/about/mandate/#Continued_funding_of_...).

But, yes, solving the distribution question is a hard problem :-).


I think it would be wise to let people invest now in order to acquire stellars later on - assuming more funding would be welcome by the foundation.


We wish Stellar all the best and it's certainly a huge improvement on Ripple Labs, but we're also working on a (not directly competitive, but related) project http://hyperledger.com/ without any native currency or pre-allocation at all.

Hope we can integrate with Stellar as soon as possible.


Great - shoot me an email (joyce@stellar) and happy to help!




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