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.
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)
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.
