- Ripple’s CTO is encouraging his X followers to vote for a new “clawback” amendment.
- The clawback feature is set to expand the token asset control capabilities of the XRP Ledger.
- David Schwartz explained that the clawback feature would be helpful during legal obligations.
On October 2, Ripple’s Chief Technology Officer, David Schwartz posted on X (formerly Twitter) about a “clawback” feature on blockchains with stablecoins, that restricts users interested in interacting with stablecoins on XRPL from developing “different processes and procedures to do so.” He further explains that not employing the feature can pose a significant challenge for auditors and other institutions that cannot easily implement new procedures without encountering substantial friction.
Ripple has recently announced the Clawback feature in a proposal to expand the token asset control capabilities of the XRP Ledger. If approved, the Clawback feature, designated as XLS-39, will empower developers to offer increased trust and security for the assets they have issued. Pitching the same benefits, Schwartz was encouraging users to vote for the “clawback” amendment.
Moreover, Schwartz expressed that he was initially hesitant about this new feature due to the presence of the freeze feature for issued assets. However, he noted that the primary scenario where Clawback comes into play is with assets that represent genuine legal obligations, such as a stablecoin redeemable by its issuer for cash. Therefore, to represent this on the ledger is essential to avoid significant losses. The CTO added,
Freeze is all or nothing. Clawback is more surgical. If you think issuers will always use clawback to replace cases where they would otherwise have used freeze, it’s hard to object to this change. It allows the issuer to be less intrusive. And, of course, XRP has no issuer and so can never be clawed back or frozen.
Latest technical developments and Ripple’s recent victory against the US SEC, have pushed XRP’s value to the green zone. Yesterday, the coin observed a 0.22% increase over the last 24 hours and a 5.27% rise across the weekly price chart. Additionally, experts believe that XRP will potentially lead the charge in the upcoming bull run.
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