Ripple Chief Technology Officer David Schwartz explained that validators force the firm to burn its 48 billion XRP tokens to support XRP price.
Validators force firm to burn XRP, says Ripple CTO
Ripple is one of the most popular US-based technology firms. Moreover, Ripple CTO Schwartz admitted in a series of tweets that community votes could force Ripple to burn its entire XRP holdings. Thereby, mentioning blockchain is “very democratic”.
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
Moreover, as there are presently 45.3 billion tokens in circulation, a sudden release of a portion of the escrowed tokens could cause the price of XRP to plunge. According to CoinGecko, the XRP price is $0.57, at the time of writing.
Ripple burns over 50 billion XLM tokens
Additionally, Ripple decided to burn over 50 billion of Stellar Lumens (XLM) in November 2019. At the time, Stellar reduced its total supply of 105 billion XLM tokens down to 50 billion. According to CoinGecko, XLM price is $0.173, at the time of writing.
Ripple CTO hit out at the Stellar Development Fund for burning over 50% of the total XLM tokens. In addition, he said that it is “too bad XRP is decentralized, or someone could just burn half the supply and raise the price to 29 cents.”
More so, there is a long-standing criticism of Ripple for routinely selling tokens. As per XRPArcade report, the firm sold approximately 196 million XRP per month since December 2017. Furthermore, in order to support the XRP price, Ripple decided to stop selling XRP and embark on purchasing back the tokens in the Q2 and Q3 of this year.