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The current market cap as per stellarvalue.org, stellarvalue.com, coingecko.com, coinmarketcap.com and others is wildly incorrect.

As of 16/12/2014 21:00Hrs GMT, the market cap is based on a total of 3,548,876,750* stellars “not held by the foundation”, however only a total of 1,548,876,750* stellars have been given away thus far under the direct sign up program. 3,548,876,750 – 1,548,876,750 = 2,000,000,000 stellars.

There is and always be a constant difference of 2,000,000,000 stellars for at least 5 years (until July 31st 2019 when Stripe is allowed to sell stellars on the open market). This difference of 2,000,000,000 stellars is actually what was given to Stripe in order to pay back the loan of $3,000,000 given to the Stellar Development Foundation at the outset when Stellar launched on July 31st 2014.

As per the Stellar Development Foundation mandate, see https://www.stellar.org/about/mandate/#Funding
Undert the sub-heading, Funding:
“The Foundation received a loan of $3,000,000 from Stripe which was subsequently repaid with 2% of the stellars”.

2% of the 100billion stellars created at genesis is 2,000,000,000 stellars paid to Stripe which is the difference between “stellars not held by the foundation” and “stellars given away”as mentioned in the 3rd paragraph.

And also, more importantly, under sub-heading, Stellar Distribution:
“In order to provide additional stability to the system, the nonprofit founders and Stripe have voluntarily agreed not sell any of the stellars initially received (either via employee grants in the case of the founders or via repayment of the loan) for at least five years; however, Stripe may auction any of their stellars, provided the recipients also agree not to sell their stellars for five years, and net profits are returned to the Foundation.”

Therefore according to the financial education, financial access, openness and transparency mandate of the Stellar Development Foundation, they kindly released this information.

What this means is that the only stellars actually available in the open market are those that have been given away under the direct sign up program which as of todays date (16th December 2014 21:00Hrs GMT) are 1,548,876,750* stellars.

However under rules of commonsense, fairplay and justice, the REAL market cap should therefore be calculated as follows, with todays (16/12/2014) “valuation”:
1,548,876,750 stellars x $ 0.00306261*=$4,743,605 and NOT the incorrect market cap of 3,548,876,750 stellars x $0.00306261*=$10,868,825

The real market cap should be based on the actual stellars in the market place, ie. Those given away or “released into the wild” under the direct sign up program and NOT include those given to Stripe, as Stripe is NOT allowed to sell their 2,000,000,000 stellars for at least 5 years.

In the cryptocurrency world, people will pay what they perceive a cryptocurrency to be worth, therefore an incorrect and higher market cap gives an unfair advantage to speculators, individuals (or companies-exchanges, gateways, etc.) who will pay a higher price because they perceive the Stellar Market Cap is high and consequently erroneously raising the market cap even further when the actual truth is that it should be less than half of what it is currently.

I hope this makes sense to objective minds and this great & misleading error be corrected and rectified for the good of all and in the interests of the “education, financial access, transparency and openness” mandate of the Stellar Development Foundation.

*info provided by https://www.stellar.org/stats/ and www.stellarvalue.org  at 21:00Hrs GMT on 16th December 2014
*Screen prints available as proof of numbers used

« Last Edit: December 16, 2014, 10:37:12 PM by stella4life »