Ripple’s employees have disclosed in a document that the company plans to reserve 25 billion XRP, which is 25% of the total supply, for funding operations and potential profitability. The remaining 75 billion XRP will be distributed to incentivize market participants like market makers, consumers, and gateways to utilize the XRP Ledger and ecosystem dApps.
A document from November 2014, recently uncovered by the XRP community, revealed that Ripple’s original intention was to keep only 25% of the total XRP supply and distribute the rest to market participants. The document provided detailed insights into the Ripple Protocol, explaining its functionality, key features, potential use cases, settlement mechanisms, and more. It was authored by Patrick Griffin and Wellington Sculley from Ripple’s Business Development department, along with Head of Markets Phillip Rapoport and former Goldman Sachs payments analyst Roman Leal.
The document also highlighted the token allocation strategy, stating that Ripple Labs plans to retain 25% of all XRP issued for operational funding and profit, while distributing the rest to incentivize market participants to utilize the protocol. It emphasized that the architecture of the Ripple Protocol dictates that only 100 billion XRP will ever be minted, with the current circulating supply at 55.6 billion XRP. The authors stressed the importance of this predetermined supply in ensuring the appreciation of XRP’s value.
Addressing concerns about the impact on XRP’s price, the authors asserted that as demand for XRP grows, its value should appreciate, aligning the incentives of Ripple Labs with those of the protocol’s users. They also clarified that Ripple does not plan to sell all of its XRP, but rather retain 25% to turn a profit and fund its operations.
Furthermore, the report delved into the potential use cases of the Ripple Protocol and XRP crypto, highlighting Ripple’s focus on providing a free, real-time settlement infrastructure for global commerce. It outlined the advantages of using Ripple technology for banks, payment processors, and regulators, providing real-time settlement, enhanced payment services, and regulatory compliance monitoring.
As of now, XRP is trading at $0.4857 with a 50% decrease in trading volume to $400 million over the weekend. This information was shared on Twitter on June 20, 2024, by SMQKE. The report also recommended resources for buying Ripple (XRP) and provided a tutorial for Ripple XRP Wallet, along with 24-hour XRP price checking and more Ripple (XRP) news. It also offered a newsletter subscription for daily insights.
