Ripple’s Chief Technology Officer, David Schwartz has admitted that the company could be forced by validators to burn its 48 billion XRP tokensregardless of whether you agree with the decision or not.
The company currently owns half of the total XRP offering and has been targeted by the community in the past for selling tokens., although it heavily refutes the price manipulation claims and has ceased the practice of late.
In one thread Schwartz confirmed this on Twitter The community could vote for Ripple to burn its entire stash of XRP tokens and declare that the blockchain is “very democratic”..
“There would be nothing Ripple could do to prevent this from happening.”
XRP ledger changes require 80% approval from the ledger validators and are triggered when held above this threshold for two weeks. In particular, in June, the XRPL validators voted to accept a new amendment called “The Checks Amendment” without the support of Ripple.
The change introduces the ability for users to compete against each other for a set amount of XRP that can be cashed at a later date.
Schwartz’s comments are sort of a post-writing to an incident that occurred last November It turned out that Ripple could also unilaterally decide to burn the billions in excess supply. At this point, Stellar had just reduced its total supply from 105 billion XLM tokens to 50 billion.
Black attacked to the Stellar Development Fund to burn more than 50% of the total written XLM tokens:
“Shame XRP is decentralized or someone could burn half of the supply and raise the price to 29 cents.”
Stellar Co-Founder Jed McCaleb replied that Ripple could burn as many tokens as possible::
What are you talking about? Ripple’s labs can burn half of the XRP supply.
– Jed McCaleb (@JedMcCaleb) 9th November 2019
Black admitted This could be done to explain that this would have to be done by a non-traditional methodFor example, use the tokens as charges or send them to an account that could never be accessed.
Ripple has long been under fire for routinely selling tokens. According to a 2020 report by XRPArcade, the company has been selling an average of 196 million XRPs per month since December 2017. A total of 5.5 billion XRP had been sold through April, which is $ 3.45 billion at press time.
In the second and third quarters of this year, Ripple stopped selling XRP and began buying back the tokens to support the price.. In the third quarter, the company purchased XRP for $ 45.5 million.