The Debate Over Burning 40 Billion XRP Escrowed by Ripple
The debate surrounding the burning of the 40 billion XRP coins held in escrow by Ripple has gained traction recently, catching the attention of Ripple’s Chief Technology Officer (CTO), David Schwartz. Various community members have expressed their opinions on whether or not these coins should be burned.
Proposed Method for Burning 40 Billion XRP
On social media platform X, community members discussed the reasons why Ripple has not burned the escrowed coins. One member suggested that Ripple had already allocated these coins to different companies and institutions worldwide. However, another member argued that there is no technical means to burn the coins without changing the protocol and obtaining approval from all validators.
In response, David Schwartz clarified that while burning the coins in a traditional sense is not possible, Ripple could achieve a similar effect by blackholing or transferring control of the account where the escrow completes into.
Impact of Burning the Escrowed Coins
The continuous release of XRP from the Ripple escrow has contributed to concerns about inflation in the circulating supply. Each month, one billion XRP tokens are released, with a portion remaining in circulation to support Ripple’s On-Demand Liquidity (ODL) service.
If Ripple were to burn all the coins in escrow, it would permanently eliminate 40% of the XRP supply. This reduction could potentially have a positive impact on the coin’s value, as seen with other cryptocurrencies like Shiba Inu after a similar supply burn.
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