- David Schwartz said Ripple’s massive XRP dump is part of a plan to exhaust its holdings.
- Community members argue Ripple can burn its XRP stash instead of selling it.
- Ripple releases one billion from its escrow account every month, most of which is returned.
Ripple Labs Chief Technology Officer (CTO) David Schwartz defended the company’s recent massive XRP dump. The post by Schwartz follows increased chatter among crypto community members concerning Ripple’s XRP holdings.
In the post shared on the social media platform X (formerly Twitter), Schwartz explained that the continued token sale is a strategic move by the blockchain firm. “Ripple’s original plan was to reduce our XRP holdings as quickly as we could,” he wrote.
According to the CTO, the blockchain firm has only two choices regarding its XRP stash. “We can continue to hold as much XRP as we do, or we can reduce the amount of XRP that we hold. There really isn’t any third option.”
However, notable community members argued otherwise. In particular, renowned XRP advocate Mr. Huber suggested an alternative solution to exhaust the XRP supply. The crypto sleuth tweeted that the firm can decide to burn its XRP holding rather than sell it.
In another tweet, Schwartz stated that the initial plan for the XRP stash was to use it for giveaways, incentivize partnerships, and drive adoptions. On whether an XRP burn was possible, the CTO said, “I can’t think of any set of events that would lead that to happen that’s even remotely probable. I also don’t think it would have any real benefits.”
In its last quarterly report, Ripple disclosed it has around 41.3 billion XRP locked in an escrow account. Every month, one billion locked XRP is released into circulation, most of which Ripple returns to the escrow account. The company holds around 5.2 billion tokens in corporate accounts for operational use.
In the report mentioned above, Ripple estimated that it would release all the locked tokens in the next 42 months. Going by that, the earliest timeline for the 41 billion to be exhausted is early 2027.
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