Do validators burn the 48 billion XRP from Ripple?
In a Twitter thread, Ripple CTO Schwartz confirmed that the community could decide to burn 48 million XRP tokens. This is due to the specific provisions of the protocol.
Not only the Bitcoin course is currently experiencing a boom. Almost in its slipstream, the Altcoin Ripple (XRP) has also reached new heights. Now, however, the validators are threatening to put a huge damper on it. Ripple’s Chief Technology Officer, David Schwartz, has admitted according to media reports that the company could be Bitcoin Bank forced by the validators to burn its 48 billion XRP tokens. Whether the company agrees or disagrees with this is irrelevant in the ledger log.
Ripple itself currently owns half of the entire XRP offering. In the past, there have been frequent accusations of price manipulation due to the sell-out of tokens. However, Ripple has always firmly denied these allegations. However, in order to avoid such accusations, Ripple has recently stopped this sales practice.
In a Twitter thread Schwartz confirmed that the community could well vote for Ripple to burn its entire stock of XRP tokens. Should it really come to that, there was nothing Ripple could do about it. The Blockchain lives from its democracy.
Ripple does not have the democratic majority of the community
The XRP Ledger is run by independent members of a global XRP community, with Ripple itself playing a major role. In it, Independent Validator Nodes come to an agreement on the sequence and validity of XRP transactions. Active validators of the ledger include universities, stock exchanges and financial institutions. There are currently 36 validators, of which Ripple leads six.
XRP ledger changes require an 80 percent approval rate from the validators of the ledger. They are implemented when this threshold is maintained for a fortnight. In June, the XRPL validators voted in particular to adopt a new amendment entitled „Check Amendment“ without Ripple’s approval. The amendment introduces the possibility for users to issue each other cheques for a predetermined amount to XRP, which can be cashed at a later date.
CEO Brad Garlinghouse recently provided insight into the composition of his clientele. Only 5 percent are US citizens. There are also rumours that the company wants to move its headquarters from San Francisco to Japan. Ripple co-founder Chris Larsen and Garlinghouse are expressing their frustration with the lack of regulatory clarity in the United States.