Stellar lowers base reserve for creating accounts to 0.5 XLM

Stellar published updates on GitHub about lowering the base reserve to 0.5 XLM what made the cost of creating accounts and orders inexpensive and led to XLM price rise
12 January 2018   1285

The Stellar network stated that it requires small fees on transactions and minimum balances on accounts in order to prevent people from overwhelming the network and to aid in prioritization.

As it was stated on Stellar GitHub, all Stellar accounts should have a minimum balance of lumens and any transaction that would reduce balance to less than the minimum will be rejected with an INSUFFICIENT_BALANCE error.

The minimum balance was calculated using the base reserve, and from january 12 it was lowered to 0.5 XLM. The minimum balance for a basic account is $$2 * [base reserve]$$, and every additional entry costs the base reserve.

Entries include:

  • Trustlines
  • Offers
  • Signers
  • Data entries

For example, an account with 1 trustline and 2 offers would have a minimum balance of $$(2 + 3) * [base reserve] = 2.5 XLM$$.
 

Stellar GitHub

At the moment of press, these are main market parameters of Stellar:

  • Average price: $0,69
  • Marketcap: $12 355 845 024
  • 24h volume: $478 618 000

New Morgan Creek Fund to Exclude Pre-Mined Crypto

Ripple and Lumen won't be included to Morgan Creek Digital Asset Index Fund
28 August 2018   232

Morgan Creek, which manages $ 1.5 billion in assets, launched its own crypto fund, the Morgan Creek Digital Asset Index Fund, but refused to include some large crypto-currencies. This is reported by Forbes.

For example, in the new fund, which was managed by the American company Bitwise Asset Management, such cryptocurrencies as XRP, developed by the Ripple, and Lumen (XLM) of the Stellar project, are not represented, as their release was carried out through the so-called pre-goal.

If there’s a central party that owns 30% or more of supply then we withhold those from the index. Because we think that introduces a lot of additional risk that may not be there if it was a more decentralized network.
 

Anthony Pompliano
Partner, Morgan Creek Digital 

The index fund includes a set of 10 major cryptocurrencies weighted by market capitalization, which is rebalanced monthly. There are some other requirements, such as the presence of custodial solutions and a restriction on the concentration of trade.

When forming the fund, the risks of centralization of crypto assets were taken into account because of the increased probability of manipulating their prices and possible issues of regulators if such assets were recognized as securities.

We’re fully prepared and feel we’ve built something that institutional investors will find attractive regardless of how the assets are categorized. Whether they’re securities or not.
 

Anthony Pompliano
Partner, Morgan Creek Digital 

According to the co-founder of Bitwise co-founder Hunter Hosley, the main difference between the Morgan Creek Digital Asset Index Fund and the HOLD 10 fund launched by his company is the availability of the first inspection committee, which included Morgan Creek CEO Mark Yusko, Pompliano and Bitwise Research Department head Matt Hogan.

Hosley said that the decision of the committee to limit cryptocurrencies with pre-currency is caused by two main factors: fears about the opportunities for fraud, which are possessed by large holders of assets, and the doubts of regulators for which a high degree of centralization is an additional basis that allows to recognize crypto currency as a security.

The Morgan Creek Digital Asset Index Fund is already available for institutional and accredited investors. Hosley promised that the fund will be audited by Cohen & Company from this fall, the results of which will be published on an annual basis. The first report will be submitted in early 2019