Matt Hamilton, the former Director of Developer Relations at Ripple, recently expressed his perspective on the allegations surrounding Ripple’s funding and support for the XRP ecosystem. In light of the ongoing Securities and Exchange Commission (SEC) case, Hamilton acknowledged the challenging situation Ripple faces and the need for caution in funding decisions to avoid potential accusations of improper market influence.
Hamilton emphasized the dilemma of striving for funding decentralization while a single entity, such as Ripple, controls a significant portion of the funds. The legal context surrounding the SEC case adds an additional layer of complexity, making it necessary for Ripple to carefully navigate funding decisions to prevent potential allegations of market manipulation.
“I feel Ripple is in a troublesome state of affairs as it doesn’t matter what they do; there may very well be issues. In the event that they fund an excessive amount, then that may very well be seen as influencing the market and doubtlessly not good with the SEC case,” Hamilton explained.
Regarding RippleX, Hamilton confirmed that it is funded by Ripple and operates as a business unit within the same legal entity. Responding to concerns about the concentration of funds in Ripple’s control, he shared his thoughts on the dormant state of the XRPLF (XRP Ledger Foundation) initiative, which was intended to address this issue.
“It is a tough conundrum and something I wrestled with whilst I was there. The dichotomy of wanting funding to be decentralized but at the same time one entity has most of the funds. The XRPLF was meant to ‘solve’ that in some way, but seems fairly dormant,” he wrote on Twitter.
Hamilton acknowledged the complexity of financial matters and the challenges in distributing funds equitably. Given the impossibility of funding everyone, there is potential dissatisfaction among those who do not receive funding. The key lies in establishing a fair and inclusive process that ensures a more balanced distribution of funds.
As Ripple continues to navigate the legal landscape and strives to address concerns surrounding funding decentralization, the outcome of the SEC case will likely play a significant role in shaping the future of Ripple and the XRP ecosystem.
