Ripple CTO Explains Whether XRP Can Be Destroyed

News
Sun, 03/08/2020 - 09:45
Alex Dovbnya
David Schwartz, the CTO of Ripple, reveals whether validators can destroy all XRP tokens that the company holds in its escrow wallet
Cover image via ripple.com
Contents

In a series of tweets, David Schwartz, the CTO of blockchain company Ripple who also happens to be the main architect of its proprietary software, answered some questions about creating or destroying XRP.  

He explained that validators couldn't simply destroy XRP tokens that are held in the company's escrow wallet. 

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No more tokens 

According to Schwartz, nobody can create more tokens because of certain "safeties" in the software that prevent more issuances. The total circulating supply of XRP stands at 100 bln tokens with nearly 60 percent of it locked in Ripple's escrow wallet

XRP owners can lock or destroy their tokens if they want to. However, if validators potentially revolt against Ripple and choose to burn its escrow holdings, the server that powers the XRP ledger would simply count them as disagreeing ones, which could potentially halt the network.      

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Changing the rules 

Schwartz claimed that changing the rules would require a hard fork. Those network participants who agree with them would have to update their code. 

Back in September, some members of the XRP community who were dissatisfied with the company's egregious sales decided to create a fork called Ripple One. However, this plan never got off the ground. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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