Aaron McDonald, the founder and CEO of Futureverse, has confirmed that rXRP tokens on the Root Network are backed 1:1 by XRP tokens on the XRP Ledger (XRPL).
The Root Network, an EVM-compatible platform that uses XRP as its gas token, has faced some questions from the XRP community about its transparency and legitimacy. The network claims to offer a bridge to the XRPL, enabling cross-chain interoperability and scalability.
However, some XRP enthusiasts have raised doubts about the network’s use of rXRP, a wrapped version of XRP. They have also questioned how the network is distributing XRP rewards to its validators through the Vortex token, which contains a mix of XRP and ROOT, the native token of the Root Network.
The controversy started when the Root Network team announced that the validators who secured the network in the last cycle had received 602K Vortex tokens, containing 362K XRP and 4.7M ROOT. The Crypto Basic called attention to this announcement. However, data suggests the XRPL bridge sees an inflow of just 48K XRP.
Thomas Silkjær, Head of Analytics and Compliance at XRPL Foundation, replied to the post, asking how the network was distributing 360K XRP when the XRPL bridge account had only ever received around 48K XRP. He also wondered how the Root Network had a total XRP balance of 680K XRP.
Futureverse CEO Clear the Air
Aaron McDonald, founder and CEO of Futureverse, the team behind the Root Network, addressed Silkjær’s inquiries. He explained that throughout the developmental stages, the network underwent various transformations in the bridging process and account management, especially in the prelude to its public debut.
Hey ? thanks for asking we have had several iterations of bridging process and accounts during the development of the network, especially during the pre public launch phase. All rXRP tokens are backed 1:1 by XRPL XRP in our vault accounts. We are consolidating these so that it’s…
— Captain McDonald (@aaronmcdnz) November 24, 2023
Notably, the Root Network leverages rXRP, a wrapped version of the original XRPL-based XRP. This rXRP resides on the Root Network. McDonald assured that every rXRP token had a direct 1:1 backing from XRPL XRP in their vault accounts.
Moreover, he mentioned the ongoing consolidation of these accounts for enhanced tracking and transparency. McDonald explained that this consolidation was a contributing factor to the current inability to unwind the Vortex. He committed to delivering a more detailed report and emphasized the security of all funds.
The Root Network is one of the projects seeking to leverage the potential of XRP and the XRPL. However, it also faces the challenge of gaining trust and adoption from the community. The network’s transparency and accountability will be crucial in achieving its vision.