Ripple’s ecosystem has been under scrutiny following the introduction of RLUSD, a centralized stablecoin, sparking speculation about the company’s commitment to XRP. Despite these concerns, experts and Ripple executives have reiterated XRP’s central role in the company’s long-term vision.
Because Ripple “plans to retain 25% of all XRP issued.”😏💨
— SMQKE (@SMQKEDQG) January 2, 2025
Documented. 📝
Few see the bigger picture.💎 https://t.co/8nAhmJGSTJ pic.twitter.com/dnQkPzp4zj
Prominent cryptocurrency researcher SMQKE (@SMQKEDQG) recently addressed this debate, emphasizing Ripple’s sustained investment in XRP. He pointed out Ripple’s strategy of retaining 25% of all issued XRP. This allocation aims to fund operations and incentivize participation from market makers, gateways, and consumers, reaffirming XRP’s integral role in Ripple’s ecosystem.
Ripple decided to hoard 70% of today's escrow release…
— Saul 🏴☠️ (@uptownsaul) January 1, 2025
Is that what someone does when they're "abandoning" XRP? https://t.co/4tGa7UrCXf
Further evidence of Ripple’s commitment is reflected in its escrow management practices. On January 1, Ripple unlocked 1 billion XRP tokens but promptly re-escrowed 70% (700 million XRP). This ongoing escrow activity underscores Ripple’s dedication to ensuring a steady, sustainable supply of XRP for its operations.
Ripple CTO David Schwartz has clarified that RLUSD and XRP serve complementary purposes within the ecosystem. While RLUSD is designed for specific use cases requiring stability and compliance, XRP functions as a bridge currency, facilitating international payments and liquidity provisioning.
Unlike RLUSD, which carries centralization features such as restrictions on use and the ability to freeze tokens, XRP adheres to blockchain’s core principles of decentralization and censorship resistance. This distinction highlights XRP’s broader appeal to users and developers prioritizing open, decentralized financial solutions.
Ripple’s strategic retention of XRP, alongside the complementary roles of RLUSD and XRP, reflects a balanced approach to scaling its ecosystem. This alignment benefits Ripple’s participants, including financial institutions and gateways, reinforcing XRP’s enduring relevance.
As Ripple continues to innovate, the coexistence of RLUSD and XRP exemplifies the company’s broader mission to create efficient, scalable solutions for global transactions. While RLUSD targets compliance-oriented use cases, XRP remains the cornerstone of Ripple’s decentralized ambitions, attracting diverse markets and ensuring the protocol’s growth.
This dual-asset strategy demonstrates Ripple’s commitment to advancing its ecosystem while upholding XRP’s prominence as a bridge currency in the evolving landscape of global finance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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