Stellar has a built-in inflation system, where lumens are created and distributed at a rate of 1% each year.

Although transaction fees on the Stellar Network are extremely cheap, thousands of them per second do eventually add up. These Lumens from transaction fees are thrown together into an inflation pool.

Why have an inflation system?

The inflation system is meant to distribute all the transaction fees back to Stellar Lumens holders. It was also put into place to account for lost Lumens (hard drive crashes, theft, etc)

How it works

Every account has an “inflation destination” feature. All this says is, when new lumens are created through inflation, which account should they go to? You get to be part of this vote! But you cannot vote for yourself unless you have 0.05% of the lumens.

Thus, if you join a pool (group of people putting their lumens together) that has .05%, the funds made from inflation can trickle down to you weekly.

There are a few pools we will list in the resources.

4 Curated Resources

Stellar Inflation

free, Official Documentation

This is how the Stellar organization explains it. It’s for developers so it may be a little technical.

This is a community pool that started on Reddit that has no fees unlike other pools. It is an open source project and run from some really friendly folks who moderate the subreddit.


free, Inflation Pool

The top pool, and one of the only ones, for XLM currently. Due to it’s almost monopoly it as pretty high fees at 10%. You still get paid though.

Reddit post that goes more in-depth on inflation and tells you how to set up inflation payments.