The Stellar blockchain is a new model of decentralized payment system similar to Ripple. Launched by Jed McCaleb, who also founded Mt. Gox and co-founded Ripple, Stellar aims to enable fast, cost-efficient cross-border payments by bridging the gap between fiat and cryptos. Its native token is XLM, or Stellar Lumens.
The Stellar network employs the Stellar Consensus Protocol (SCP), which is a construction of the Federated Byzantine Agreement (FBA). Without central authority involved, this mechanism provides a way to reach a consensus relying on the agreement of trusted nodes in the distributed network, which not only guarantees network security and decentralization, but also ensures safe and fast transaction confirmation.
To prevent network congestion caused by spam accounts and dust transactions, and to incent account holders to keep their accounts secure and valid, Stellar accounts must maintain a minimum balance to exist.
● New accounts must lock 1 XLM for account activation
Stellar requires new accounts to hold a minimum balance of 1 XLM (2 base reserves) before the transaction function is activated.
● Every subentry requires an additional balance of 0.5 XLM
According to Stellar's policy, on top of the minimum balance of 1 XLM, every subentry after account creation requires an additional balance of 0.5 XLM (1 base reserve). Subentries include trustlines, offers, signers, and data entries. An account cannot have more than 1,000 subentries.
Note: Base reserve is a unit of measure used to calculate an account’s minimum balance. One base reserve is currently 0.5 XLM. Validators can change the base reserve if they all agree.
To avoid transaction failure, please make sure your XLM balance meets the minimum reserve requirement.