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Lets assume I own 10% of all XLM of the network and I want to receive inflation for my XLM.

By default this option "inflation destination" is not set on my account. So question is - where does "inflation I am entitled to" go if I have not set this option?

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Unallocated inflation lumens are returned to the fee pool.

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    So lumens I might be entitled to are returned to fee pool? I was understanding that this "inflation destination" is more of a vote. If you are not voting, youre entitled to nothing and your portion is split among those who voted. – Rena Jan 9 at 10:08
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    That's actually the same, because your portion goes to the fee pool which in turn is used to calculate the distributed lumens, see formula in the link. – shredding Jan 9 at 11:59

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