Former Ripple Director Matt Hamilton has raised the possibility that Ripple could potentially destroy all of the XRP tokens held in its escrow wallets, adding a new layer of complexity to the legal battle with the SEC.
Ripple’s Hidden Power to Burn
Hamilton, a former Ripple Principal Developer Advocate, suggested that Ripple could utilize its technical capabilities to render its future escrow funds almost untouchable, effectively making the tokens unusable, even for Ripple itself.
Legal Ramifications
The SEC’s request to destroy LBRY Credits (LBC) tokens in a recent lawsuit ignited a debate in the XRP community about whether Ripple could be forced to burn the XRP in its escrow. Ripple’s CTO, David Schwartz, mentioned that while neither the court nor the SEC may have direct authority, consensus among XRPL validators could enforce such action. Pro-XRP lawyer Bill Morgan emphasized that a court order wouldn’t automatically bind XRPL validators, requiring a legal hearing for enforcement. This aligns with Ripple CEO Brad Garlinghouse’s prior statement in April 2021, suggesting the consideration of burning XRP tokens in specific scenarios for the benefit of the broader XRP ecosystem.
Hot Take
The potential decision to burn XRP tokens introduces a new dimension to Ripple’s ongoing saga and its legal complexities.
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