In the world of cryptocurrency, misinformation can spread quickly, and XRP has long been the subject of one particular myth that refuses to die: the idea that more XRP tokens can be printed at will. This claim has persisted despite numerous explanations, but now, one of the most respected voices in the XRP community, “All Things XRP,” has taken to social media to clear up the confusion once and for all.

In a detailed thread, the community advocate laid out ten key points to dismantle the myth and explain why the XRP supply is immutable, transparent, and governed by a decentralized system. Let’s break down what was said and why these concerns about inflation or the ability to mint new XRP tokens are completely unfounded.

XRP’s Supply: Immutable and Transparent

Contrary to the claims that XRP can be printed at will, the reality is that XRP’s total supply was pre-mined at the introduction of the XRP Ledger (XRPL) in 2012. Unlike other cryptocurrencies, which use mining processes to introduce new tokens into circulation, XRP’s entire supply of 100 billion tokens was created upfront. There is no minting function in the XRPL, and the idea that new XRP can be created is simply false.

Instead, the XRP ecosystem follows a deflationary model. Every time a transaction occurs on the network, a small portion of the XRP is burned as part of the transaction fee. This gradual burning process ensures that the supply of XRP decreases over time, rather than inflating.

Decentralized Governance Prevents Tampering

A critical aspect of the XRP Ledger’s design is its decentralized governance structure. Independent validators, not Ripple (the company behind XRP), oversee the operation of the XRPL. Ripple controls fewer than 10% of these validator nodes, which is a common misconception that has led many to believe the company has control over the XRP network.

In order to make any significant protocol-level changes, including altering the supply of XRP, an overwhelming consensus from validators is required. Specifically, over 80% of the validators would need to agree to the change, and this consensus would need to be maintained for two consecutive weeks. Given the structure of the network and the checks in place, such a change is considered highly unlikely, both economically and politically.

Ripple’s XRP Holdings Are Secure in Escrow

Another frequent point of confusion surrounds Ripple’s holdings of XRP. While it is true that Ripple holds a significant portion of the total XRP supply, it cannot release these tokens into the market at will. Ripple currently has 36 billion XRP in escrow, with a maximum of 1 billion XRP allowed to be released per month. Any unused XRP from this release is returned to escrow, making the system fully transparent and verifiable on the blockchain.

This escrow system ensures that Ripple cannot flood the market with excessive tokens, even if it wanted to. The process is designed to maintain market stability and prevent manipulation, which helps reassure investors about the future of XRP.

The Economic Case Against Printing More XRP

One of the most compelling arguments against the idea of printing more XRP is the economic incentive to avoid such a move. Increasing the supply of XRP would dilute its value and damage the trust in the entire ecosystem. Ripple, as a business, understands that printing more tokens would be detrimental to its own holdings and to the broader XRP community. It would essentially undermine the very foundation of the network and lead to a loss of confidence from investors and stakeholders.

As the “All Things XRP” thread points out, such an action would be “economic suicide” for Ripple, which has much to lose from any inflationary pressure on XRP’s price. This is why the notion of creating more XRP tokens is not only baseless but also fundamentally irrational.

The Burn Debate: Will It Boost XRP’s Price?

There has been ongoing discussion about whether Ripple should burn the XRP tokens it holds in escrow to reduce the total supply and, in turn, potentially increase the token’s price. While some proponents argue that burning XRP would benefit holders, Ripple’s Chief Technology Officer, David Schwartz, has pointed out that burning the supply is unlikely to have any significant impact on the price. He referenced the example of Stellar (XLM), whose price did not see a major shift after half of its supply was burned.

This reinforces the idea that market value is driven by more than just supply and demand; it is influenced by broader factors, including adoption, network use, and investor sentiment.

Conclusion: The Truth About XRP’s Supply

The bottom line is clear: XRP’s supply is fixed and cannot be altered. Ripple, validators, and developers have no means of minting new XRP tokens, and there are built-in mechanisms that ensure the network remains deflationary over time. The claims that XRP can be printed at will or that the token’s supply can be manipulated are simply myths with no basis in reality.

As the XRP community continues to grow and evolve, it’s crucial to dispel these myths and focus on the facts. XRP’s fixed supply, decentralized governance, and deflationary model position it as a unique and stable cryptocurrency with long-term potential.