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Ripple CTO comments on odd 410M XRP transfer fee

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TL;DR

  • A substantial 410 million XRP transaction, valued at around $197 million, was recently conducted with an unusually high processing fee of 20 XRP.
  • Saul discovered this abnormality on XRP Scan, highlighting the stark contrast with the standard transaction fee of roughly 0.00001 XRP.
  • Ripple’s CTO, David Schwartz, suggests the anomaly might be due to a miscalculation, with the sender erroneously setting the fee millions of times higher than intended.

 

A recent transaction involving a colossal sum of 410 million XRP has stirred discussions within the XRP community due to an unusually high fee. This event unfolded on October 11, 2023, when a new XRP wallet was activated. Notably, the transaction drew scrutiny for its abnormal processing fee of 20 XRP, significantly higher than the standard fee of approximately 0.00001 XRP.

Saul, an XRP enthusiast, first highlighted this unusual activity. While perusing data on XRP Scan, a prominent XRP Ledger explorer, he spotted the transaction geared toward the newly activated wallet. The 410 million XRP, with an approximate value of $197 million, immediately stood out due to the exorbitant transaction fee.

This discovery piqued the community’s curiosity, including Ripple‘s CTO, David Schwartz. Schwartz weighed in on the conversation with a theory that the sender might have miscalculated the transaction fee. He proposed that an error occurred while the sender attempted to set the fee at 20 drops (with one drop equivalent to 0.000001 XRP) and mistakenly inflated it by a factor of one million, leading to the 20 XRP charge.

Additionally, the situation prompted insights from Vet, an XRP ambassador and XRPL validator, whom Saul had contacted for clarity. The vet labeled the hefty fee as overkill, affirming that such a transaction should not ordinarily incur such costs.

Moreover, the official account of XRP Scan provided a different perspective. They suggested that the individual initiating the transaction might have attempted to deplete their wallet balance to zero. This intention would involve burning account reserves, a process seemingly misunderstood by the sender. They appeared uninformed about the recent adjustments in account reserve requirements and the specific Account Delete transaction type, inadvertently resulting in the excessive fee.”

Beyond this instance, there’s a notable uptick in large-scale transactions within the XRP ecosystem. Reports indicate that “whales,” or large-scale holders, now possess 26.8% of the total circulating supply of XRP, underlining a concentration of assets. These movements and holdings are significant, as they can introduce substantial shifts in the market dynamics for this cryptocurrency.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

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