Network validators could force Ripple to burn the XRP tokens it owns, regardless of the fintech company’s stance on the issue, said its chief technology officer David Schwartz.
The CTO’s message appeared under a post by a Twitter user. The latter asked whether burning Ripple’s 50 billion XRP could be possible if nodes, validators and the community decided so.
Unralated question: If Nodes, validators and the community at large got together and we agree that its better for the community to burn the 50 billion XRP ripple has in escrows would that be possible? 🤔
— IKHOR [FIAT-Limpator] (@ethanjames0394) December 2, 2020
Yes. There would be nothing Ripple could do to stop that from happening. Public blockchains are very democratic. If the majority wants a rules change, there is nothing the minority can do to stop them.
Yes. There would be nothing Ripple could do to stop that from happening. Public blockchains are very democratic. If the majority wants a rules change, there is nothing the minority can do to stop them.
— David Schwartz (@JoelKatz) December 2, 2020
“Public blockchains are too democratic,” noted the Ripple CTO.
In 2017, the company placed 55 billion XRP in a secure escrow account. As each of the 55 contracts for 1 billion XRP matured, the tokens were sold to institutional investors to incentivize market makers.
In March 2020, Ripple’s CEO Brad Garlinghouse acknowledged that the company would not be profitable without XRP sales, although in the second half of 2019 it sharply reduced coin sales.
In the second quarter of 2020, XRP sales reached an annual high of $32.55 million.
Earlier Ripple announced the purchase of its own tokens in the third quarter for $45.55 million to further support \”healthy markets\”.
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