• Advertise with us
  • Pricing
  • Submit News
Instagram Twitter Facebook Telegram Youtube Linkedin
EdaFace Newsfeed
EdaFace Newsfeed EdaFace
  • News
    • Price Analysis

    Main News

    • Crypto News
    • Bitcoin and BTC
    • Altcoin News
    • Security & Hacks
    • ICO & Token Sales
    • Interviews & Profiles

    Information

    • Press Release
    • Research Report
    • Regulations, Law & Policy
    • Community/Guest Post
    • Events & Conferences
    • Tutorials & Guides

    Market

    • Technical Analysis
    • Price Analysis
    • Cryptocurrency Price Prediction
    • DeFi (Decentralized Finance)
    • Mining & Staking

    Other Categories

    • NFTs & Digital Art
    • Opinion & Editorials
    • Tech Innovations
  • Cryptocurrencies
    • Coin Ranking
    • Trending
    • EDA Token
  • Exchanges
    • Spot
    • Derivatives
    • DEX
    • EDA Plantation
  • Verification Centre
    • Rug Pull Check
    • Blockchain Ecosystem
    • EDA Token
  • MarketPlaces
    • NFT Marketplace
    • Digital Literature
    • Digital Mall
    • P2P Market
    • Metaverse
  • EDA Academy
More
  • News
    • Price Analysis
  • Cryptocurrencies
    • Coin Ranking
    • Trending
    • EDA Token
  • Exchanges
    • Spot
    • Derivatives
    • DEX
    • EDA Plantation
  • Verification Centre
    • Rug Pull Check
    • Blockchain Ecosystem
    • EDA Token
  • MarketPlaces
    • NFT Marketplace
    • Digital Literature
    • Digital Mall
    • P2P Market
    • Metaverse
  • EDA Academy
Reading: Ripple CTO Reveals Shocking Truth About XRP Burning Mechanism!
Share
Sign In
EdaFace Newsfeed
EdaFace Newsfeed EdaFace
EdaFace Newsfeed > Latest News > Crypto News > Ripple CTO Reveals Shocking Truth About XRP Burning Mechanism!
Crypto News

Ripple CTO Reveals Shocking Truth About XRP Burning Mechanism!

vitalclick
Last updated: December 13, 2024 1:10 pm
3 months ago
Share
SHARE

Contents
How XRP Burning WorksHow Fees Work on the XRP LedgerRipple’s Plans for RLUSD

In the ongoing conversation about XRP burning in the XRP community on the X, a user asked What happens when trillions of RLUSD tokens move daily on the XRP Ledger? If XRP is burned when sending RLUSD on the XRP Ledger? Ripple’s CTO, David Schwartz, quickly jumped in to provide a detailed explanation of how XRP’s burning mechanism works and its impact on both XRP and RLUSD.

How XRP Burning Works

David Schwartz explained that XRP’s burning mechanism is a unique feature of the XRP Ledger that helps keep the network secure and efficient. Every time a transaction is made, whether it’s for XRP or RLUSD, a small fee is charged in XRP. This fee is not returned to the system; instead, it is permanently removed, or “burned,” from circulation. 

The minimum is set by consensus. But if there’s a burst of transaction load beyond what the network can clear, transactions are prioritized based on fees.

— David “JoelKatz” Schwartz (@JoelKatz) December 13, 2024

While the amount burned per transaction is very small typically around 0.00001 XRP, still the process will help reduce the total supply of XRP over time.

Schwartz said that the amount of XRP burned will likely remain small, even as transaction volumes increase. He pointed out that even if systems like SWIFT, Visa, and Mastercard—which handle billions of transactions each day implemented XRP burning, it would only account for about 0.0075% of the total supply of XRP each year.

How Fees Work on the XRP Ledger

David Schwartz even clarified how transaction fees work. Ripple’s RLUSD, a stablecoin built on the XRP Ledger, also follows the same fee system. Even though RLUSD is a separate asset, its transactions still burn XRP. This means that every time RLUSD is used, XRP’s total supply could decrease, but the impact will be small.

When there’s more activity, the fees can increase slightly, but this ensures that spam transactions are kept out, and important ones move faster.

Ripple’s Plans for RLUSD

In the meantime, Ripple is preparing to launch RLUSD soon, and it could play a significant role in the stablecoins market, which is expected to grow to $2.3 trillion. 

Meanwhile, the burning of XRP through RLUSD transactions may not drastically reduce XRP’s supply, but it will still have an ongoing, gradual effect. This, combined with the planned launch of RLUSD and its future use, will likely have long-term implications for the XRP Ledger’s economy.

You Might Also Like

Crypto Whale’s Big Investment Creates Excitement in Markets in Pepe Coin, AERO and FTM

A New Trend for Young Investors?

Analysis: Global Trade War and Crypto Coins

Breaking News: Good News of Coinbase’s Altcoin Listing Came Before the End of the Day

$68K Target in Sight After Extended Pause, Here’s What’s Next

TAGGED:CryptoNews
Share This Article
Facebook Twitter Email Print
Previous Article Hot Development: New Statements for US Cryptocurrency Regulations
Next Article Velodrome and Vana Tokens Surge in Value
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Crypto Live Widget

Follow for Live Updates
Subscribe to our newslettern

Get Newest Articles Instantly!

- Advertisement -
Ad imageAd image
Popular News
Cryptocurrency Regulation in Russia : Blockchain Development
Current Cryptocurrency Regulations in India
Explore Cryptocurrency Regulation in South Korea
2 Altcoins Win Trial
Claimed Bitcoin Inventor Craig Wright Gets Shocked in Court! His Assets Are Frozen

Company

  • Vision
  • Mission
  • LitePaper
  • Whitepaper
  • Core Values
  • Branding
  • Teams
  • Career Listing
  • FAQ
  • Welfare Donations

Products

  • EDA Token
  • Blockchain Literature
  • EdaFace Dex
  • EdaFace Mall
  • Listing Platforms
  • Newsfeed
  • NFT Marketplace
  • P2P Market
  • Scam Verification Centre
  • School of Crypto

Legal

  • Term of Use
  • Privacy Policy
  • Disclaimer
  • Listing T&C
  • Listing Platforms
  • Eda Token Policy

Always Stay Up to Date

Subscribe to our newsletter to get our newest articles instantly!

EdaFace

About US

EdaFace is a user interface aggregator that brings all the various functionalities of the crypto industry onto a single platform! You can advertise, launch and crowdfund your crypto project via EdaFace Launchpad and Newsfeed.

Contact us: support@edaface.com

Follow us

Instagram Twitter Facebook Telegram Youtube Linkedin

Copyright © 2022 – 2024. EdaFace is a product of Emerging Digital Age (EDA) Pty Ltd. All Rights Reserved.

Join Us!
Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.
EdaFace
Welcome Back!

Sign in to your account

Lost your password?