Unlocking 1 Billion XRP Tokens in October
On October 1, Ripple will unlock 1 billion XRP tokens from its escrow system. This release will occur in three transactions: 100 million, 400 million, and 500 million XRP.
This unlock accounts for 1.87% of the current circulating supply of 53.31 billion XRP. Additionally, it is part of the remaining 46.69 billion XRP tokens owned by Ripple that will be released monthly until February 2027.
The unlock is held by two known wallet addresses controlled by Ripple:
- Address “Ripple (22)” will unlock 500 million XRP that was locked on July 01, 2019.
- Address “Ripple (23)” will unlock 100 million XRP that was locked on July 01, 2019.
- Address “Ripple (23)” will unlock 400 million XRP that was locked on August 01, 2019.
These two addresses still hold 5 billion XRP tokens for monthly escrows that will be finalized in the next five months until February 29, 2024.
Why Did Ripple Create This Escrow System?
In order to control the release of XRP, Ripple implemented an escrow system. When XRP was created in 2012, the total supply was capped at 100 billion XRP. Initially, 20 billion XRP was distributed to the creators and core team, while the remaining 80 billion XRP was held by Ripple’s treasury.
Ripple decided to release these coins gradually and introduced the escrow system in 2017. The system locks up XRP through smart contracts, ensuring that they can only be used when certain conditions are met. Ripple committed to releasing one billion XRP on the first day of each month for 55 months, totaling 55 billion XRP.
However, instead of spending or selling all of the monthly released XRP, Ripple continues to lock up the remaining tokens in new escrows for future releases. This extends the deadline for all XRP to be put into circulation beyond the initial 55-month period.
This is What Ripple Did to the 1 Billion XRP Released in September
In September, 1 billion XRP tokens worth $500 million were unlocked and immediately relocked by Ripple. They set these tokens to escrows that will be finalized by January and February of 2027.
Furthermore, 75 million XRP were spent on September 18 and an additional 50 million tokens were put into circulation on September 22. These tokens came from both the leftover 25 million XRP from September’s escrows and 25 million tokens from previous releases.
Hot Take: Ripple’s Controlled Release Strategy
Ripple’s escrow system allows them to carefully control the release of their XRP tokens. By gradually unlocking a portion each month and relocking the rest, Ripple maintains stability in the market and ensures a controlled supply. This strategy aims to prevent sudden influxes of XRP that could disrupt its value. With the upcoming unlock in October, Ripple continues to follow its planned release schedule, contributing to the long-term growth and sustainability of XRP.
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