- Bill Morgan initiated a discussion on the decision to issue 100 billion coins on the XRPL (XRP Ledger).
- XRPL’s substantial coin issuance was explained in response to a comparison with SOL’s circulating supply.
- Ripple CTO David Schwartz confirmed the technical considerations, emphasizing the preference for integer amounts.
In a recent Twitter exchange, lawyer Bill Morgan sparked a thoughtful discussion about the decision behind issuing 100 billion coins on the XRPL (XRP Ledger) and its implications for tokenomics.
The conversation unfolded in response to a user’s observation about SOL’s circulating supply being significantly smaller than XRP’s, prompting Morgan to delve into the rationale behind the XRPL’s substantial coin issuance.
Fredo Ayala, the X user, pointed out that, while the rate of inflation might be similar, the vast supply of XRP is designed to enhance liquidity. However, Ayala argued that this abundance could potentially hinder price appreciation, raising concerns about the tokenomics of XRP.
Morgan, in response to Ayala’s insights, expressed the need for careful consideration regarding the decision to issue 100 billion XRP rather than a smaller number. This opened the door to a broader conversation about the impact of circulating supply on the asset’s value and market dynamics.
Notably, another X user contributed to the discussion by referencing former Ripple employee Bob Way’s explanation of the numeric intricacies underlying XRP’s design. Way emphasized that, from a technical standpoint, both 21 million Bitcoin and 100 billion XRP are represented by 64-bit integers.
Ripple’s Chief Technology Officer, David Schwartz, also joined the conversation, confirming the technical considerations behind the decision.
The CTO highlighted the preference for integer amounts that fit into 64 bits, leaving room for a sign and additional space to prevent complications like overflowing during additions. Schwartz mentioned that they wanted an amount that humans could comprehend and a reasonable level of divisibility.
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