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Ripple could be forced to burn it’s XRP token supply by validators

Ripple could be forced to burn it’s XRP token supply by validators

Quick Take

1 minute read

  • David Schwartz has recently said that the company could be forced by validators to burn it’s 48 billion XRP tokens no matter what decision the company actually comes to.
  • Currently, the company owns and controls around half of the tokens overall supply and as a result of this, there has been a lot of backlash from the community for selling off tokens in the past. 

David Schwartz, the chief technical officer at the San Francisco-based blockchain initiative ripple has recently said that the company could be forced by validators to burn its 48 billion XRP tokens no matter what decision the company actually comes to.

Currently, the company owns and controls around half of the tokens overall supply and as a result of this, there has been a lot of backlash from the community for selling off tokens in the past. Despite this, the company has many times denied the allegations that they are manipulating the token price.

Speaking on Twitter, the CTO confirmed that the community could vote for the company to burn the whole overall supply of the tokens adding that they are very democratic to the blockchain.

He said:

On top of this, amendments to the XRP ledger would require an 80% approval rating from validators of the ledger and if they are activated, it could stay above the level for a fortnight.

The comments from the CTO come after something that happened in November last year in which the company was revealed to be able to unilaterally decide to burn billions in excess supply.

“Too bad XRP is decentralized or someone could just burn half the supply and raise the price to 29 cents.”

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