This is what Ripple did to the 1 billion XRP released in December
On January 1, Ripple will unlock $620 million worth of XRP tokens in three transactions. This release represents 1.84% of the circulating supply and 2.17% of the remaining tokens under Ripple’s control. The company has been unlocking tokens on the first day of each month, with the remaining tokens locked in escrows until May 2027.
In December, Ripple unlocked 1 billion XRP tokens but immediately relocked 800 million of them to escrows that will finalize by April and May 2027. However, the company spent 310 million tokens from its main address in December, selling them off in four transactions.
How does the escrow system work for Ripple unlocks?
Ripple created XRP in 2012 with a total supply of 100 billion tokens. The company distributed 20 billion to creators and the core team, while the remaining 80 billion were controlled by Ripple’s treasury. To ensure controlled release, Ripple implemented an escrow system where one billion XRP is released on the first day of each month for 55 months.
Ripple has been locking up the monthly tokens in new escrows instead of spending or selling them immediately. This extends the circulation deadline for all XRP tokens. These sales impact XRP’s supply inflation and can affect its future price and value.
Hot Take: Ripple’s Controlled Release Strategy for XRP Tokens
Ripple’s approach to releasing XRP tokens through an escrow system demonstrates a strategic effort to control supply inflation and manage token circulation. By unlocking a specific number of tokens each month, Ripple can carefully influence the economic dynamics and future value of XRP.
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