Insights into Ripple’s XRP Escrow Release Timeline
Ripple, a leading crypto solutions provider, has revealed details about the potential end date for its XRP unlocks. In its recent 2023 XRP Markets Q3 report, Ripple stated that the XRP tokens available in its wallets and subject to on-ledger escrow locks will be released every month over the next 42 months. This suggests that the timeline for the XRP escrow release is estimated to be around 2027. The report reflects Ripple’s cautious approach to managing the supply and circulation of XRP.
Every month, Ripple automatically unlocks approximately 1 billion XRP tokens from its escrow wallet within the XRP ledger. These tokens contribute to the current circulating supply of 54.13 billion XRP. The Q3 report shows that between June 30 and September 30, 2023, Ripple’s escrow wallet held around five billion XRP.
Ripple Community Calls for XRP Escrow Burn
The XRP community is engaged in discussions regarding the burning of XRP tokens within Ripple’s escrow wallet. Some community members argue that burning a significant portion of these tokens could potentially trigger a price surge for XRP. Despite the positive performance of other altcoins like Bitcoin, Ethereum, and Solana, the price of XRP has struggled to increase significantly.
However, some skeptics point out that a similar move by Stellar Lumens (XLM) did not result in any significant price change. The debate within the XRPL community continues as members hope for an escrow burn that could benefit current XRP holders.
Hot Take: Ripple Faces Community Pressure to Burn Escrowed XRP Tokens
The Ripple community is divided over whether or not Ripple should burn the XRP tokens held in its escrow wallet. While some members believe that burning a significant portion of these tokens could lead to a price increase, others are skeptical, citing the example of Stellar Lumens (XLM) where a similar action did not affect the token’s price. Ripple’s careful approach to managing the supply and circulation of XRP reflects its commitment to maintaining stability in the market. However, as community pressure grows, Ripple may need to address the demands of its supporters and consider alternative strategies for boosting the value of XRP.
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