Why does Stellar (XLM) have a minimum balance?

Stellar is a special asset that has built-in rules on minimum balances. Just like some bank accounts that require a minimum deposit, in order to activate and use Stellar (XLM), you must deposit and maintain a balance greater than 1 Stellar (XLM) in your Exodus Stellar (XLM) address.

Once you have made a deposit of 1 or more Stellar (XLM), your account will get activated and everything will be just like the way you are used to with Bitcoin, Ethereum or any other asset within Exodus.


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Stellar's official stance

The Stellar (XLM) asset is unique in that, unlike other assets, Stellar (XLM) enforces reserve requirements in order to protect the shared global ledger from growing excessively large as the result of spam or malicious usage.

The Stellar network requires minimum balances on accounts in order to prevent people from overwhelming the network and to aid in prioritization.

To submit transactions, an address must hold a minimum amount of XLM in the shared global ledger. You cannot send this XLM to other addresses. To fund a new address, you must send enough XLM to meet the minimum reserve requirement.

The current minimum reserve requirement is 1 XLM; this is the cost of an address that owns no other objects in the ledger.

If your first deposit is less than 1 XLM, your transaction will be auto-rejected on the Stellar (XLM) Ledger due to the minimum reserve requirements in place.

You can read more information on the: Stellar (XLM) reserve requirements in the official documentation.


How Exodus Handles XLM Minimum Balances

Similar to how Exodus requires a minimum Ethereum balance to exchange ERC20 tokens, Exodus also requires a small amount of Stellar (XLM) to be stored in your wallet to remain in compliance with Stellar's enforced reserve requirements.

By default, Exodus enforces a minimum balance of 1 XLM. If your Stellar (XLM) address in Exodus has less than this minimum balance, clicking on the "Receive" tab will display a modal (pop-up) with this warning to alert you of the situation:

Stellar Minimum Balance Requirement

Please note that you will not be able to send Stellar (XLM) while the balance in your Exodus wallet remains below 1 XLM

If your Stellar (XLM) address in Exodus contains less than 5 XLM, you will be alerted that your balance is low as a friendly reminder that transacting XLM may bring you below the minimum reserve requirement. This warning is displayed in the upper right-hand corner of Exodus when viewing your Stellar (XLM) wallet.

Stellar Low Balance Warning

If you see the "Low Balance" warning, you will still be able to transact with Stellar (XLM) but should remain mindful of dipping below the enforced 1 XLM  minimum.

Once your balance exceeds 5 XLM, all of these notifications will disappear from the Exodus UI. Should you dip below these pre-established amounts, Exodus will once again display these warning messages.

When exchanging other assets for Stellar (XLM), Exodus will always make sure that the user will receive more than 5 XLM to ensure these XLM-centric minimums are followed.

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