According to a recent tweet from the official account of crypto exchange Poloniex, more than 1.2 million Stellar Lumens (XLM) has been distributed to many Poloniex users who hold Stellar as part of the Stellar Inflation Rewards, a collaboration between the exchange firm and Stellar Lumens.
What is a Stellar Inflation Reward?
Earlier in May, Poloniex announced a reward system for XLM holders. Basically, the Stellar network runs with a voting system. This system gives the right to a single vote, for every holder of a unique XLM token.
If a holder continues to accumulate enough to be entitled to at least 0.05% of the voting power on the Stellar network, the Network would then issue said holder new XLM tokens at the rate of 1%, as a reward. In summary, as long as you can vote 0.05% of the network, you get credited with 1%.
According to the announcement, Stellar is living up to its promise and has already given out 1.2 million XLM – roughly $96,000. The announcement also answers a few queries in the form of a Frequently Asked Questions (FAQ) format.
It states Tuesday as the official weekly payday for all Stellar holders who meet the requirements at the time of the weekly balance snapshot which will happen every Monday at 8 pm ET.
It also states that for eligibility, a holder must have at least 1 STR in their Poloniex account at the time of the Snapshot. Furthermore, Poloniex customers are expected to verify their eligibility by signing into the platform.
Any accounts not in good standing, including closed or frozen accounts, automatically lose their eligibility. Most importantly also, Stellar inflation will be restricted from certain prohibited jurisdictions as specified in the Poloniex User Agreement. Some of these places include China, Germany, Pakistan, Vietnam, and New York.
Poloniex also notes that the process is free of charge and automatic for eligible account holders. However, it clearly does not take a stand with regard to whether or not these bonuses are taxable. Instead, the page says “we recommend reaching out to a tax professional for more information.”