Reading time 7
What is Stellar Development Foundation
The Stellar Development Foundation (SDF) is a non-profit organization that was established in 2014 to support the development and adoption of the Stellar network. Stellar is a blockchain-based platform that enables the transfer of various types of digital assets, including cryptocurrencies and fiat currencies, with the goal of making financial transactions more accessible and affordable for people around the world.
The SDF is responsible for overseeing the development and maintenance of the Stellar protocol, as well as promoting its adoption among individuals, businesses, and organizations. The foundation is funded by donations from individuals and businesses, as well as from a portion of the lumens (XLM) cryptocurrency tokens that are generated by the Stellar network.
The SDF is committed to creating a more inclusive global financial system, and has undertaken a number of initiatives to support this goal. These include partnerships with financial institutions, non-profit organizations, and other stakeholders to develop new applications and use cases for the Stellar network. Additionally, the SDF operates a number of programs to support developers and entrepreneurs who are building on the Stellar platform.
The history of Stellar Development Foundation
The Stellar Development Foundation (SDF) was founded in 2014 by Jed McCaleb, who is also the co-founder of Ripple, another cryptocurrency and blockchain-based payment system. McCaleb created Stellar with the aim of providing a more efficient and accessible payment system that could be used by anyone, regardless of their location or financial status.
Originally, Stellar was based on the Ripple protocol, but McCaleb eventually decided to create a new protocol that would be more open and decentralized. The Stellar protocol was launched in 2015, and the SDF was established as a non-profit organization to oversee its development and adoption.
In its early years, the SDF focused on building partnerships with financial institutions, non-profit organizations, and other stakeholders to promote the adoption of the Stellar network. It also launched a number of initiatives to support developers and entrepreneurs who were building on the platform, including a developer program and a community fund.
Since its inception, the SDF has continued to evolve and expand its mission. In 2019, the foundation launched a new mandate to focus on creating equitable access to the global financial system, with a particular emphasis on reaching underserved communities. The SDF has also expanded its partnerships and collaborations, and has worked to develop new applications and use cases for the Stellar network.
How Stellar Development Foundation works
The Stellar Development Foundation (SDF) is a non-profit organization that is dedicated to promoting the adoption and development of the Stellar network. The foundation is governed by a board of directors, which is responsible for setting the overall strategy and direction of the organization.
The SDF’s primary role is to oversee the development and maintenance of the Stellar protocol. This involves working with developers to create new features and improvements to the platform, as well as ensuring that the network remains secure and reliable.
The foundation is also responsible for promoting the adoption of the Stellar network. This involves working with businesses, financial institutions, and other organizations to create new applications and use cases for the platform. The SDF provides support and resources to these partners, including technical assistance and funding through its community fund.
In addition to its development and adoption efforts, the SDF also operates a number of programs to support developers and entrepreneurs who are building on the Stellar platform. This includes a developer program, which provides technical resources and mentorship to developers, as well as a community fund, which provides funding for projects that support the mission of the SDF.
The SDF is funded through a variety of sources, including donations from individuals and businesses, as well as from a portion of the lumens (XLM) cryptocurrency tokens that are generated by the Stellar network. The foundation is committed to transparency, and publishes regular financial reports to ensure that its funding and spending are open and accountable to the public.
How does Stellar Foundation make money
The Stellar Development Foundation (SDF) is a non-profit organization, which means that it does not operate to generate profits for shareholders or owners. Instead, the foundation is funded through a variety of sources, including donations from individuals and businesses, as well as from a portion of the lumens (XLM) cryptocurrency tokens that are generated by the Stellar network.
Here are some of the ways the SDF generates revenue:
- Donations: The SDF relies on donations from individuals and businesses to support its operations. These donations may be one-time or ongoing, and can come from a variety of sources, including individuals, companies, and other non-profit organizations.
- Lumens (XLM) distribution: The Stellar network generates new lumens (XLM) through a process called inflation. A portion of these new lumens is allocated to the SDF, which can then use them to fund its operations and initiatives.
- Partnerships: The SDF works with a variety of businesses, financial institutions, and other organizations to promote the adoption of the Stellar network. Some of these partnerships may involve funding or other forms of support that generate revenue for the SDF.
- Investment income: The SDF may invest its resources in order to generate income, which can then be used to support its operations and initiatives.
It’s important to note that the SDF operates as a non-profit organization, and is committed to using its resources to promote the adoption and development of the Stellar network. Any revenue generated by the foundation is used to support these goals, rather than to generate profits for shareholders or owners.
