Home Altcoins News XRP’s Fixed Supply of 100 Billion Explained by XRPL Validator

XRP’s Fixed Supply of 100 Billion Explained by XRPL Validator

XRP Supply

Recent discussions have arisen around whether Ripple has the power to create more XRP beyond the original supply of 100 billion tokens. Some critics, like Pierre Rochard, a Bitcoin maximalist and Vice President of Research at Riot, have claimed that Ripple might be able to increase the token’s supply. However, an XRP Ledger (XRPL) validator named Vet has stepped in to clarify the matter, explaining why it’s impossible to create more XRP.

Vet, a well-known decentralized unique node list (dUNL) validator for the XRPL, took to social media to offer a detailed explanation. He pointed out that the total supply of 100 billion XRP was created in 2012 when the XRPL network was first introduced. At that time, all of the XRP was issued and held in a genesis account. This account, along with its cryptographic keys, is publicly available, ensuring full transparency. Anyone can verify the original supply of XRP, confirming that no new tokens can be generated.

According to Vet, the XRPL’s design ensures that no additional XRP can ever be created. The XRPL’s system is constructed to prevent any creation of new XRP, with safeguards in place to detect and stop any attempt to issue more tokens. Each transaction on the network is monitored, and if a bug were to try and generate additional XRP, the system would block it immediately. A critical feature of the XRPL is its “invariant checker,” a built-in security mechanism that constantly ensures that no new XRP is being minted. This safeguard has been active since the network’s inception, ensuring that the supply remains capped at 100 billion.

Unlike Bitcoin, which experienced a bug in 2010 that accidentally created 184 billion BTC, the XRPL has never had such an issue. Vet pointed out that such an event is highly unlikely due to the robust nature of the XRPL’s code and the continuous monitoring of transactions. Furthermore, Vet emphasized that XRP is actually deflationary, meaning the total supply is decreasing over time. This is due to the transaction fees that burn small portions of XRP with each transaction, thus reducing the circulating supply rather than increasing it.

These explanations from Vet come in response to claims made by Pierre Rochard, who argued that Ripple could still issue trillions of additional XRP tokens. Rochard suggested that Ripple could potentially fork the XRPL software, remove supply restrictions, or modify the escrow locks. He also alleged that Ripple had misled the public about the decentralization of the XRP Ledger. Rochard even went as far as to compare XRP to fiat currencies, which governments can print at will, claiming that XRP’s supposed scarcity was an illusion.

Ripple’s Chief Technology Officer, David Schwartz, addressed Rochard’s claims, explaining that forking a blockchain, including Bitcoin, doesn’t necessarily result in any widespread adoption of the changes. Schwartz argued that just as anyone could fork Bitcoin’s code and change the supply limit, that doesn’t mean that the original Bitcoin network would accept the changes. He pointed out that the XRPL operates under the same principles; while someone could technically fork the code, the original network would maintain its integrity and supply limits.

In conclusion, Vet’s clarifications have reinforced the notion that XRP’s supply is capped at 100 billion, with no possibility of creating more tokens. This permanent cap is part of the network’s design and ensures the scarcity and stability of XRP.

Read more about:
Share on

Sakamoto Nashi

Nashi Sakamoto, a dedicated crypto journalist from the Virgin Islands, brings expert analysis and insight into the ever-evolving world of cryptocurrencies and blockchain technology. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

Crypto newsletter

Get the latest Crypto & Blockchain News in your inbox.

By clicking Subscribe, you agree to our Privacy Policy.

Get the latest updates from our Telegram channel.

Telegram Icon Join Now ×