Stellar Vault XLMV

DECENTRALIZED STORE OF VALUE

XLMV WHITE PAPER

I. ABSTRACT

II. GROWING DEMAND FOR A DIGITAL STORE OF VALUE

III. XLMV ECONOMIC MODEL AND DISTRIBUTION

V. LIQUIDITY MINING / ROADMAP

IV. CONCLUSION

I. ABSTRACT

Current financial system with a central authority has an inherent problem: the goals of the authority can diverge from the goals of the users of the system. With the introduction of Bitcoin, it became clear that the governance system can function in a decentralized manner. Bitcoin introduced an innovative approach to processing payments without a trusted third party. The functions of a bank have been replaced by an open-source software where network participants vote with their computing power to determine whether a financial transaction is valid.

Ethereum, the second largest blockchain, allows its users to build decentralized financial applications. Whereas traditional financial system is based on centralized infrastructure that is managed by authorities, institutions, and intermediaries, decentralized finance is powered by a public code. By deploying smart contracts on Ethereum blockchain, it became possible to launch innovative financial products that are available to almost anyone. The sector is growing exponentially, and we may witness a global adoption of decentralized finance in the foreseeable future. However, although Bitcoin and Ethereum may be lucrative investments for global financial systems, their high associated fees may be more viable for commercial investors - this creates a need for the average retail investor looking to minimize transaction costs. Stellar Vault (XLMV) resolves this demand by combining bitcoins tokenomics on the lightning fast Stellar Protocol.

II. GROWING DEMAND FOR A DIGITAL STORE OF VALUE

We expect the demand for decentralized “store of value” assets to rise considerably as the risk of currency debasement increases. Institutional and individual investors become more aware of the serious flaws in the current financial system. This awareness will drive demand for non-correlated alternative asset classes and “store of value” assets, especially in the blockchain space. Our conviction is that the monetary value and the security of a store of value need not relate to any centralized power and blockchain technology elegantly solves this problem.

Currently, gold and bitcoin are considered the most efficient “store of value” assets. Both of them not much correlated with traditional asset classes and retain their market value despite global economic downturns. However, bitcoin has significant advantage over gold because of its digital form, decentralized nature, and portability. At the same time, despite the fact that Bitcoin has an algorithmically predetermined limited supply, it has a disinflationary economic model and its production will continue until ~2140.

III. XLMV ECONOMIC MODEL AND DISTRIBUTION

Stellar Vault (XLMV) is a peer-to-peer electronic cash system that aims to become sound global money with fast payments, micro fees, privacy, and high transaction capacity. In the same way that physical money, such as a dollar bill, is handed directly to the person being paid, XLMV payments are sent directly from one person to another. As a permissionless, decentralized cryptocurrency, XLMV requires no trusted third parties and no central bank. Unlike traditional fiat money, XLMV does not depend on monetary middlemen such as banks and payment processors. Transactions cannot be censored by governments or other centralized corporations. Similarly, funds cannot be seized or frozen — because financial third parties have no control over the Stellar Network. 

XLMV combines gold-like scarcity with the spendable nature of cash. With a limited total supply of 21 million tokens, Stellar Vault is provably scarce and, like physical cash, can be easily spent. Transactions are fast with transaction fees typically less than a tenth of a cent. Anybody can accept XLMV payments with a smartphone or computer. Stellar Vault tokens have various use cases. In addition to peer-to-peer payments between individuals, XLMV can be used to pay participating merchants for goods and services in-store and online. Very low fees enable new micro-transaction economies, such as tipping content creators and rewarding app users. XLMV also reduces the fees and settlement times for remittances and cross-border trade. Other use cases include smart contracts (courtesy of the Stellar Network Protocol), and private payments with tools such as stellar vend for merchant/payment use, liquidity mining (following protocol 18 update), and earning interest yields on exchange platforms (upcoming development). XLMV is primarily intended as a store of value comparable to Bitcoin, but without the high transaction costs, and slow transaction speeds. Also, XLMV is eco friendly and readily swappable or pooled (following protocol 18 update)with over 55,000 assets on the stellar ledger, or for XLM, which in turn can be traded on over 300 exchanges around the world (not including upcoming Moneygram inclusion). 

Tokenomics:

• Total Supply (supply locked): 21,000,000 
• Development and marketing (lifetime with no initial access until quarter 1,2024, or full liquidity lock if momentum is self sustainable): 5% 
• Team and charities (no access until quarter 4, 2022, followed by incremental sales over minimum of 3 years): 10% (2,100,000) 
• Circulating Supply: 17,850,000
• Initial 10% of supply will be allocated to the StellararTerm / Stellarport trading client at 0.01 XLM, all of the proceeds will then be committed to the XLM/XLMV liquidity pair (updated daily until an additional 10% of the supply is allocated). NOTE: Genesis supply will never be offered at a price lower than it was introduced. . An additional 175,000 tokens will be  released monthly throughout 2022. As supply sales are matched in quantity for liquidity pool allocation, ultimately (over time), an estimated 8,925,000 XLMV will reach the liquidity pool directly from the Genesis account to back all hodlrs. That's nearly 43% of the total supply. Subsequent token distribution will be tentatively announced prior to Q4, 2022 but it will certainly follow an incremental monthly distribution schedule. This will decrease inflation, increase scarcity, and simplify the task of liquidity matching (which must be done as close to real time as possible to match the price action of both assets (liquidity pair), in this case, XLM/XLMV. The Stellar Vault token is backed by liquidity as well as the price appreciation of the Lumen (XLM) - as opposed to being backed by magic like other assets.

The total supply of XLMV is fixed at 21,000,000 tokens. XLMV did not conduct a token sale and never received any funds from investors. XLMV will be initially released on decentralized exchanges such as Stellar Port, Stellar Term, Inter Stellar, Nice Trade, StellarX, Litemint, and Lobstr with intentionally low initial market cap to allow early adopters to establish inexpensive exposure to XLMV and thereby allow for a natural build-up into a larger market in the future. Since XLMV has a predetermined finite supply, XLMV will steadily increase in value over time. The token supply will not be artificially reduced by either buybacks or token burning.

IV. Liquidity Mining / Roadmap

XLMV is eco friendly and readily swappable or pooled (following protocol 18 update)with over 55,000 assets on the stellar ledger, or for XLM, which in turn can be traded on over 300 exchanges around the world (not including upcoming Moneygram inclusion). 

Roadmap 2021- 2022

• Quarter 1: Initialize development on test net 
• Quarter 2: Strategize marketing implementation 
• Quarter 3: Quarter 3: Ensure that the vault token XLMV is made readily available on decentralized exchanges (Stellarport, StellarTerm, Inter Stellar, Nice Trade, StellarX, and Lobstr) with trade listings to better streamline Q1,2022 Coinmatketcap and Coingecko submission with established analytics.
• Quarter 4: Stealth Launch (this slow “IPO-esque” approach is favorable for XLMV’s scarcity as to avoid monopolization). 10% of supply will be allocated to the StellararTerm / Stellarport trading client at 0.01 XLM, all of the proceeds will then be committed to the XLM/XLMV liquidity pair (updated daily until an additional 10% of the supply is allocated). NOTE: Genesis supply will never be offered at a price lower than it was introduced.
• Quarter 1, 2022: Coinmatketcap and Coingecko listings. An additional 175,000 tokens will be released monthly throughout 2022. As supply sales are matched in quantity for liquidity pool allocation, ultimately (over time), an estimated 8,925,000 XLMV will reach the liquidity pool directly from the Genesis account to back all hodlrs. That's nearly 43% of the total supply.  Subsequent token distribution will be tentatively announced prior to Q4, 2022 but it will certainly follow an incremental monthly distribution schedule. This will decrease inflation, increase scarcity, and simplify the task of liquidity matching (which must be done as close to real time as possible to match the price action of both assets (liquidity pair), in this case, XLM/XLMV. The Stellar Vault token is backed by liquidity as well as the price appreciation of the Lumen (XLM) - as opposed to being backed by magic like other assets.

V. CONCLUSION

A new asset that has a limited supply and is extremely secure has true value. The fact that it is censorship-resistant and portable makes it more advanced than gold or fiat money. Because of the flaws in the current financial system, with its overvalued assets, leveraged products, and centralized manipulation, the demand for decentralized and censorship-resistant “store of value” assets would increase significantly over time.

The XLMV token has the potential to become a decentralized digital store of value with a zero inflation rate. The token is fully developed and operational and its holders are immediately able to use it for its intended functionality on the interoperative Stellar Network. The XLMV token structure and limited supply cannot be altered. The XLMV token will ultimately become community-driven.

LEGAL DISCLOSURE

The discussion above identifies some of the factors potential token holders should consider when allocating any capital to XLMV. These factors are not intended to be exhaustive in evaluating whether XLMV is a suitable store of value and no single factor is determinative. The XLMV white paper is provided for informational purposes only. Nothing in this document is intended to constitute investment or other professional advice or be an opinion of the appropriateness or suitability of any investment. We encourage potential token holders to seek a professional advice with respect to their personal financial circumstances and needs, before allocating any capital to XLMV.