Most startups have launched their tokens on Ethereum because it has a good ecosystem and is Turing-complete. But Ethereum also has some disadvantages. Ethereum performs 14 transactions per second. It is becoming a real problem now and it is causing existing Apps to leave the Ethereum platform. Therefore, it is good to look for other options.
Stellar Lumens is one of the best blockchain platforms that allow you to create a custom token to form the foundation of an ecosystem. In this article, we will explain how to issue and create Stellar Token on Blockchain.
Table of Contents
Here are the steps to create a Stellar token on Blockchain
Start with Creating Two accounts: Issuance and Distribution
The first step in creating a token on the Stellar platform is to create an issuer account used to issue token supply to a distribution account. We have created an issuer account to block it after generating tokens and have proved to our users that the supply of tokens will not be increased in the future.
Generate Key Pair
To do this, go to Stellar Laboratory and make sure you select the “test” tab. Then click “Generate Key Pair” and write down the secret and public keys in a safe place.
Test Network with Friend Bot Tool
Once the key pair is generated, the next step is to fund the issuing account on the test network using the Friend bot tool. It will copy your public key into the textbox and then click on “Get Test Network Lumens”.
Click on Test Network Lumens
The Green bar at the bottom will give you a notification of Successfully funded on the test Network.
Similarly, create and fund another account for the distribution and make a note of the public and private keys. Once done, you can verify that both accounts have balance by appending all public keys to the end of the following URL:
Create a Trustline between Issuance and Distribution Account
The next step is to create a trust line that indicates that the distribution account trusts the issuing account. To create a line of trust, go to the transaction builder page and enter the distribution account’s public key in the source account field.
Enter your Public key in the Secure account column and then Click on Fetch next Sequence number for the account starting with (Your key initial numbers)
Transaction Fetched
We can keep the next three fields: Memo, Base Fee and Time Bounds alone and move on to the operation type and set it to “Change Trust”.
After selecting the type of operation as “change trust”, define the asset as alphanumeric 4 or 12 based on the number of characters you want to use and enter the asset code of your choice. For example, we are creating a token for the gold asset; therefore select Alphanumeric 4 and enter “Gold” in the asset code field.
Now add your issuing account public key in the issuer account id
Enter any amount in the Trust limit column to Create Stellar Tokens. for example, I have added 100,000 Tokens
It will take you to the next page where you need to scroll down to the signatures section. We’ll add the distribution account’s secret key in the “Add Signer” field. We would use a ledger if we were doing this in reality, since it’s just an example, let’s paste the key as described above.
Submit transaction:
Now Lock the issuer Account
The final step is to lock the issuing account so that no more tokens can be created. To do this, go to the transaction builder page again and enter the public key of the issuing account in the source account field and fetch the next sequence number as we did before.
Then scroll down and select the “Operation Type” as Set Options and the Master Weight to 0 and click on “Sign Transaction at Signer” at the bottom of the page.
After that, add the sender account secret key in the “Add Signatory” field and click “Send to Post-Transaction Terminal” and then “Send” to finalize the transaction.
That’s it, the token is created on the Stellar network. Now verify your newly created token on testnet by adding a distribution account to the URL:
https://horizon-testnet.stellar.org/accounts/your distribution public key
Setup Distribution
Since our token exists and everything is set up, the final step is to give it to people. You can find many ways to do this. One of the significant features of Stellar is the decentralized exchange. You can create an offer to sell these tokens and trade them live on Stellar Exchange.
Keep the following tips in mind when distributing tokens:
- Increase the supply of tokens on a predefined schedule with pre-authorized transactions.
- Issue a dividend.
- Restrict who can keep your token.
- Conducting an auction for your tokens.
You have successfully created a Stellar Token and Creating a token on Stellar is very easy and simple compared to Ethereum Transaction, and its Cheaper and faster than all.
