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Ripple CTO says Community Could Force the Company to Burn 48 billion XRP

By Luke - Crypto Investor

Crypto-asset company Ripple may be forced to burn all of their XRP holdings, if the community votes that way. Ripple’s Chief Technology Officer, David Schwartz, has confirmed that if validators vote upon it, Ripple will have to burn 48 billion XRP tokens even if the company disagrees on the final vote.

As it stands, Ripple holds half of the entire supply of XRP, all of which could be lost as the company has been criticised for selling XRP in attempts to ‘manipulate prices’. Ripple claims the XRP has been provided to certain organisations to encourage its use. Since 2017, Ripple was apparently selling, on average, 196 million XRP a month and throughout 2020 they started to buy XRP, appearing to try to control the price. However, for Ripple to burn its supply, the XRP Ledger requires an 80% approval rate from validators.

This incident is like one that occurred in November 2019, when the Stellar Development Foundation reduced its supply of XLM by half, from 105 million to 50 million tokens. With the Chief Technical Officer (CTO) of Ripple making a foreboding remark, stating that because XRP is decentralised, people cannot “just burn half of the supply”. The co-founder of Stellar, Jed McCaleb, responded saying how Ripple could very easily burn just as many tokens.

Despite the massive price plunge of XRP, dropping down to less than $0.21, the XRP community believes Ripple will eventually be able to rebuild reputation and hope prices could elevate to new highs.

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