The total number of XRP tokens burned recently reached a significant milestone, raising questions about the potential impact of these burns on the value of the circulating XRP tokens. Ripple’s CTO, David Schwartz, has commented on this issue, discussing whether XRP burns could influence the token’s value.
According to data from the XRP Scan, just over 12 million XRP tokens have been burned and removed from circulation. This figure represents a mere 0.012% of XRP’s total available supply, which currently exceeds 99.9 billion. Given the vast number of tokens still in circulation, it seems unlikely that the tokens burned so far could significantly affect the token’s price.
The 12 million XRP burned to date is a cumulative total of all tokens removed from circulation since they were premined. These tokens were burned at different times, not necessarily on a large scale. This could explain why the XRP community is advocating for burns of Ripple’s XRP holdings.
Ripple currently holds over 40 billion XRP in escrow. Burning a significant portion of these tokens could have a more substantial impact on the token’s price than the 12 million burned so far. However, Schwartz does not believe this would yield “any real benefits.” He referred to Stellar’s burn of 55 billion XLM tokens in 2019, which did not significantly impact the token’s price.
Discussions about Ripple burning or disposing of a significant portion of their XRP holdings continue within the XRP community. This is due to accusations that the crypto firm is responsible for XRP’s stagnant price, as they are believed to continue dumping their tokens on the market. However, these allegations seem unfounded, as reports indicate that Ripple’s XRP sales do not affect the token’s price on crypto exchanges. In fact, the crypto firm is known to provide stability to the ecosystem through periodic buybacks.
Burning Ripple’s escrowed tokens is not a simple task, as suggested by Schwartz’s recent comments. It has been suggested that Ripple would likely need the approval of validators to execute these burns. A former Ripple Director mentioned that Ripple could disable the master key on the destination account that receives these escrowed funds. However, there are no guarantees that this would achieve the same effect as the tokens being removed from circulation.
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| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | David Schwartz |
| Companies | Stellar, XRP Scan, NewsBTC, Ripple, Tradingview.com |
| Currencies | Stellar, XRP |
| Securities | None |
