Ripple CTO Reveals Truths About XRP’s Distribution and Supply

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Ripple’s Chief Technology Officer, David Schwartz, recently shared insights into the company’s strategy regarding its XRP holdings. These revelations provide a clearer understanding of Ripple’s approach to managing its cryptocurrency assets.

Ripple’s XRP Allocation

Ripple’s XRP assets are divided into two distinct categories. The first comprises the XRP currently available in Ripple’s wallets. The second category includes XRP under on-ledger escrow lockups, scheduled for release over the upcoming months. However, it is important to note that Ripple does not have immediate access to the XRP in escrow until its scheduled monthly release. Historically, a significant portion of the released XRP has been returned to escrow.

Choices and Strategies for XRP Holdings

Addressing a query from a user, Schwartz outlined Ripple’s options concerning its XRP holdings. Essentially, Ripple can either continue maintaining its current level of XRP holdings or opt to reduce them. According to Schwartz, the company planned to diminish its XRP holdings as swiftly as possible. However, he doubts about this original strategy’s feasibility and potential benefits.

Initially, the company considered using giveaways to decrease its XRP supply. Yet, as XRP gained market value, the possibility of people exploiting these giveaways emerged, leading to their discontinuation. Ripple also explored alternative methods, such as locked-up sales and using XRP to incentivize partners. However, these strategies ultimately resembled direct sales of XRP.

Long-Term Vision and Escrow Decisions

Schwartz noted that Ripple is progressing well into what was initially a five-year plan despite being more than a decade in operation. He also addressed the community’s questions about managing the escrowed XRP.  In addition, Schwartz expressed ambivalence about the escrow itself and dismissed the notion of burning the escrowed supply, suggesting it might yield a different result.

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