Saturday, January 23, 2021
Home Crypto News Market What Impact It Will Have On Ripple Price If The Company Burns...

What Impact It Will Have On Ripple Price If The Company Burns Its 48 Billion XRP

- Advertisement -

Ripple could be forced to burn all of its XRP holdings if the community decides to vote for it. David Schwartz, the company’s CTO, confirmed this.

David Schwartz, Ripple’s chief technology officer, has admitted that the community could force the company to burn its 48 billion XRP tokens, regardless of whether Ripple agrees with the decision or not.

Ripple currently owns half of the total XRP supply and has come under fire in the past for selling out tokens. In a Twitter thread, Schwartz confirmed that the community could vote for Ripple to burn XRP tokens, saying the blockchain is “very democratic.”

There would be nothing Ripple could do to prevent this.

Changes in the XRP ledger require an 80% approval rate from the ledger’s validators. In June, the validators of the XRPL voted for the adoption of a new amendment, known as the “cheque amendment,” without Ripple’s support.

The change introduces users’ ability to issue checks to each other for a predetermined amount of XRPL that can be redeemed at a later time.

In November last year, Stellar reduced its total coins from 105 billion XLM to 50 billion.

At that time, Schwartz publicly opposed Stellar’s coin burning. When Stellar burns more than 50% of XLM tokens, Schwartz wrote:

 

How would the XRP Price react if Ripple burns its tokens?

In December 2017, Ripple created 55 Escrows with 1 billion XRP each. One of these 1 billion Escrows would expire every month and return the 1 billion XRP to Ripple. Ripple could then use this XRP or put a certain amount into a new escrow account.

There are Ripple accounts that currently hold 51,794,328,522 XRP, which, according to Adam Riese, means that there are still 48,196,516,786 XRP in the Escrows. Ripple has already sold 6,803,483,214 XRP.

But what would happen to the XRP price if Ripple burns its half token supply.

The XRP rate of currently 0.61 would find an equivalent equilibrium at 1.22 dollars. 

But it is doubtful that Ripple would ever knock XRP into the trash can for under 14 billion dollars.

Read Also:

- Advertisement -
Jakkk
Jakkkhttps://thecryptobasic.com/
Owner of TheCryptoBasic. Involved in cryptocurrencies for more than five years, Love to trade, and write on cryptocurrencies. My basic aim is to provide genuine information to cryptocurrencies readers because crypto is filled with frauds and scams. True information is very rare to get. So I will be providing accurate information about cryptocurrencies topics, that users can trust.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

Indian Firm Tanla Partners With Microsoft To Launch Blockchain Enabled Communications Platform-As-A-Service, Wisely

Microsoft Corporation and the Indian company Tanla have launched a blockchain based communication platform for confidential and secure messaging. ...

Investors Are Excited As Grayscale Is Setting Filecoin, Chainlink, Mana, Tezos And Livepeer Trusts

Asset management company Grayscale Investments has filed documents for the creation of a number of new cryptocurrency trust. Currently, Grayscale is considered one of...

TRASTRA Review-Cryptocurrency Card For The Mass Market

Despite the rapid growth of various cryptocurrency projects in 2020, the issue of paying with crypto in daily life remains a challenge. Unfortunately, very few...

Fund Managers Survey By Bank Of America Shows Capital Inflows To Bitcoin Are Higher Than Tech Companies

A fund managers survey conducted by Bank of America showed that Bitcoin now receives more capital inflows compared to other investment assets.

The Bank Of France Has Tested A Central Bank Digital Currency For Interbank Payments

The Bank of France announced the successful completion of testing a central bank digital currency (CBDC) for interbank settlements using the Iznes platform based...

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.