Stellar originally had a 1% annual inflation mechanism, where new XLM tokens were distributed to holders. However, in 2019, Stellar’s community voted to remove the inflation model to make the network more efficient and reduce unnecessary complexities.
Now, the total supply of XLM is fixed at 50 billion tokens, ensuring that no new tokens will ever be created. This decision helped improve Stellar’s long-term sustainability and positively impacted investor confidence, influencing the XLM price.