March 2, 2021

Ripple Labs can destroy half of the XRP tokens

Ripple Labs can destroy half of the XRP tokens

In early November, the blockchain startup StellarThe Foundation (SDF) destroyed 55 billion Stellar coins (XLM) worth about $ 4.4 billion. This event attracted the attention of the crypto community and generated a wave of interesting discussions.

Ripple CTO David Schwartzwrote on Twitter that he was pleased to attend the SwellbyRipple conference. One user, saddened by the low exchange rate of the XRP cryptocurrency, replied: “There is nothing fun at 25 cents.” Schwartz noted that XRP is a decentralized digital asset, so no one can destroy half of the coin stock to increase the price of the token to 29 cents.

Stellar creator and co-founder of Ripple Lab JedMcCaleb has denied this information and said that Ripple is able to burn XRP. In response to this claim, David said that it makes sense to destroy XRP in the event that the company's activities do not bring results. In his opinion, tokens should be invested in the development of the ecosystem, and not thrown into the furnace.

Schwartz admitted that there are several wayseliminate XRP and talked about one of them. To burn tokens, they need to be sent to an address whose public code hash does not have enough entropy to search for a private key.

Litecoin (LTC) cryptocurrency developer Charlie Leebelieves that the SDF was worth the Airdrop XLM, and not destroy the coins. In his opinion, as a result of burning tokens, the organization increased the share of its cryptocurrency reserves from 16% to 24%, since the company liquidated only 5 billion of its coins, the remaining 50 billion were in circulation. Thus, before the destruction of the SDF owned 17 out of 105 billion XLM, and after this procedure - 12 out of 50 billion. The SDF press service reported that the decision to burn tokens was made as part of the implementation of a strategy aimed at developing the blockchain. Employees of the organization recorded a drop in the effectiveness of Airdrop campaigns and therefore preferred the option related to asset annihilation.