XRP Ledger’s Clawback Feature Addresses Safety and Trust

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XRP Ledger’s Clawback Feature Addresses Safety and Trust
  • The RippleX team announces the launch of the cutting-edge Clawback feature.
  • The novel feature addresses the crucial concerns of safety and trust for businesses issuing digital assets.
  • The feature is lightweight and straightforward compared to other on-ledger features.

The RippleX engineering team of Ripple Labs announced on September 1 the introduction of the Clawback feature on the XRP Ledger, addressing the crucial concerns of safety and trust. As per the official announcement, the Clawback feature proposed as an amendment known as “XLS-39”, helps businesses issuing digital assets to “claw back” or take back their assets under special conditions, justifying the feature’s title.

The Clawback feature’s hallmark is its capability to provide “enhanced trust and safety” for the issuers, guiding and enabling them to combat industrial challenges and risks including malpractices. The feature also ensures the users’ absolute control over their digital tokens or assets even after their distribution. For instance, if an issuer is locked out of his account, the game-changing feature rescues him, helping him gain back the rightful ownership of the account.

The team also asserted that the Clawback feature is “lightweight” and straightforward, aligning with the community’s commitment to innovation and safety. Picturing the feature as a “vital clog,” the team wrote:

The Clawback feature emerges as a vital cog in the machinery of trust and safety enhancements. While not a solitary solution, it stands as an essential piece within a broader trust and safety strategy.

Though the cutting-edge feature could also be beneficial for financial organizations and other businesses, it is not applicable to XRP, the native token of XRP Ledger. Towards the end of 2022, when the notion of clawback prevailed, the tech billionaire Elon Musk tweeted, “The clawback may be their biggest fear”. Nonetheless, Vet, a leading figure in the XRP community, assured later that the token is not affected by the feature, in an attempt to dismiss the community’s growing anxiety.