The XRP Ledger (XRPL) has witnessed more than 11 million XRP tokens burned since its inception. While the burning of tokens has received little attention compared to other assets, opinions remain divided on whether the existing burn mechanism can significantly enhance XRP’s value in the future.
Combating Spam Transactions
Data from XRPSCAN, an XRP Ledger explorer, indicates that the network has burned 11.04 million XRP to date. This number has accumulated through an unpredictable burn rate that eliminates fractions of XRP after each ledger closure.
Burn mechanisms are typically employed by a network or a project’s community to create a deflationary pattern for an asset, as a decreased supply can strengthen its price movement.
However, the XRP burn mechanism aims to tackle spam transactions instead of primarily supporting the asset’s price. To accomplish this, the network imposes a transaction fee for every XRP transaction and subsequently burns the fees collected.
Wave 6 of the XRPL Grants Program
The XRPL Grants Program recently launched its sixth wave, providing a unique opportunity for developers to create innovative financial projects on the XRPL. Wave 6 focuses on projects addressing financial inequities, streamlining traditional financial processes, and presenting new XRPL use cases. The program is open to developers worldwide, and applications will be accepted until June 18, 2023.
Seeking a Wide Range of Projects
The Grants Program is looking for various projects, including applications, services, tools, and middleware. These projects will address numerous financial use cases, such as financial equity and inclusion, regenerative finance, decentralized finance, data and indexing, payments, e-commerce, merchant tooling and integration, tokenization, decentralized compliance and security, interoperability, developer tools, oracles, and insurance.
Related: “Don’t Sell Your XRP Before Ripple v SEC Lawsuit Concludes”, Warns Expert – Coinpedia Fintech News
XRPL Advantages and New Partnership
The XRPL protocol offers an open-source, energy-efficient, and decentralized blockchain with a broad range of tokenization, settlement, and liquidity capabilities, making it an ideal platform for developing new financial use cases.
The XRPL ecosystem recently announced a new partner, Fractal ID, which will supply digital identity technology to the open-source blockchain. This integration aims to improve know-your-customers and anti-money laundering processes and protocols for XRPL ecosystem participants, ultimately enhancing the experience for developers and end-users alike.
