Ripple CTO Dismisses Proposal to Donate Escrowed XRP Tokens


  • ipple CTO says donating escrowed XRP tokens is not doable due to challenges in ensuring responsible usage.
  • The proposal for the independent foundation to oversee token distribution gains traction among community members.
  • Community debates the best approach for utilizing Ripple’s escrowed XRP tokens to support XRP ecosystem growth.

Regarding a decision made by Ripple executives on their Escrowed XRP token donation to the XRP Ledger Foundation (XRPL), the CTO, David Schwartz, criticized the infeasible effects of such a move. The plan was drawn with the consideration of Panos Mekras, the co-founder of Anodos Finance, who suggested the XRPLF may possess a better position for XRP holdings that benefit the XRP community.

Feasibility challenges highlighted by Ripple’s CTO

Schwartz emphasized the complications with token transferability and that the control mechanism for asset use is unclear. Acknowledging the Uncertainty: He put forward that there could be a lot of controversy in coming up with measures that try to foresee the future. As a compounding factor, he got the community of XRP support to think over the significance of the tokens and take control for reasons like responsibility.

In response to a recommendation from one community member, Mr. CleanX, the issue of pre-mining as a potential distribution technique arose. Schwartz then explained that such an idea does not tally with the nature of XRP being a grey matter that does not have mining mechanisms. He acknowledged Ripple‘s case on the distribution systems of XRP, stressing that they were more complicated than they appeared to be and overcame more obstacles than initially expected.

Counterproposal for independent foundation

There is a disagreement between Schwartz and supporters of XRP tokens’ donation. XRP remains in an escrow account as over Schwartz’s vision that it is not feasible. However, the other community members, in a bid to counter this, responded to him. 

Drew Surmenian suggested setting up a standalone foundation to control the initiative and giving grants for XRP marketing, leading to acceptance and implementation of the Ripple protocol and ecosystem. This concept aims to tackle problems associated with use and distribution while reflecting on the growth and development of XRP.

Following the conversations in the XRP community surrounding using the escrowed XRP for token distribution, various thoughts on its prospects have been shared. Their authors are different.

Schwartz was especially concerned with the risk of impracticalities in transferring control and placing that control in responsible customer decisions. At the same time, other community members take independent steps, like establishing a private foundation. The sum of these conversations will probably determine the path the company will follow in the launch of its coins and expansion into the ecosystem.

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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James Kinoti

A crypto enthusiast, James finds pleasure in sharing knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. The latest innovations in the crypto industry, crypto gaming, AI, blockchain technology, and other technologies are his preoccupation. His mission: be on track with transformative applications in various industries.

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