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This week, <a href="https://zycrypto.com/stellar-activates-protocol-30-bell-testnet-begins-testing-quantum-resistant-signatures/" rel="noopener noreferrer nofollow">Stellar Network’s</a> Chief Product Officer revealed a major development that could be huge for&nbsp;the protocol and XLM. Speaking at the Meridian 2026 conference on Thursday, Tomer Weller said the blockchain company is preparing to overhaul XLM’s tokenomics structure.
<h2 id="h-stellar-setting-the-stage-for-major-tokenomics-upgrade" class="wp-block-heading">Stellar setting the stage for major tokenomics upgrade</h2>
While addressing the audience at the Meridian event, Weller said Stellar is getting ready to reorganize XLM’s tokenomics. The <a href="https://www.youtube.com/watch?v=7XsVZ7tq1Pc" rel="noopener noreferrer nofollow">tokenomics overhaul proposal</a> aims to give value to XLM holders and reduce token supply.
At the event, the executive said that by quarter 1 2027, Stellar will unveil an important governance transformation related to tokenomics and fully implement it across the network.&nbsp;
He acknowledged that Stellar has had a fixed supply with no inflation or staking rewards since 2019. He therefore said the company is now exploring ways to roll out effective value-capture mechanisms to help generate real profit for XLM holders and users.
According to the executive, the upcoming overhaul plans to use Stellar’s existing network transaction fees to fund user rewards. The initiative is looking at ways to reward user on-chain activity and balances, a move that aims to encourage customers to hold and use XLM.
The upgrade is still under deliberation, and governance voting will begin soon, with implementation targeted for Q1 2027 if approved.&nbsp;&nbsp;&nbsp;
Why this matters
According to the executive, the upcoming overhaul initiative will rewrite XLM tokenomics and redesign the supply-and-demand dynamics of the tokens. The tokenomics reform focuses on sharing existing transaction fees with holders and users instead of minting new tokens. This marks a shift from ‘how to issue more tokens’ to ‘how to decrease supply and create a connection between network revenue and token value’.
As disclosed above, Stellar is getting ready for a significant tokenomics upgrade, a major governance decision that could redefine its token economics.
This proposal matters because it aims to decrease token dilution, strengthen XLM’s scarcity narrative, and give value to token holders.&nbsp;
By reducing inflation through governance, this program focuses on ecosystem growth. If the proposal passes and its implementation is executed, it is set to become a significant bullish long-term catalyst for <a href="https://zycrypto.com/stellar-eyes-200-rally-as-xlm-closes-in-on-1-billion-stablecoin-milestone/" rel="noopener noreferrer nofollow">XLM</a>, driving market demand and network adoption.

Stellar Eyes XLM Tokenomics Overhaul to Give Rewards to Holders and Users, Chief Product Officer Reveals

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