Ripple’s CTO Interacts with XRP Community, Advises Against Escrow Burning
Ripple’s Chief Technology Officer (CTO), David Schwartz, recently addressed concerns raised by the XRP community regarding the company’s XRP strategy. One particular concern involved the burning of the entire XRP escrow.
During a recent discussion, Schwartz responded to worries expressed by a community member called “GPDBurnTheEscrow” about the monthly XRP releases. He explained that Ripple had the option to either maintain or actively reduce its XRP holdings, with the initial plan being a swift decrease.
Schwartz expressed doubt about the likelihood of events that would lead to the burning of the escrow, stating that it was highly improbable and would not yield any real benefits.
Despite suggestions from the community about burning the escrow, Schwartz remained skeptical about its practical advantages. This led to a broader conversation about the potential challenges faced by XRP holders until the escrow is diminished.
In addition, legal expert and pro-XRP enthusiast, Bill Morgan, addressed concerns about Ripple’s $238 million XRP sales in December 2023. He challenged what he called a “false narrative,” which suggested that Ripple was dumping a significant amount of XRP.
To address concerns about potential challenges faced by XRP holders until the escrow is depleted, Schwartz referred to the case of Stellar in 2018. Stellar burned 55 billion tokens worth $5.5 billion to address concerns about its extensive supply.
Schwartz argued that the burn did not have a significant impact on the price of XLM, highlighting that the notion of burns boosting prices was unfounded.
Due to legal constraints, Schwartz did not provide a detailed analysis. Instead, he encouraged the community to explore XRP tokenomics in a creative manner. Despite the engagement, there remained a sense of pessimism within the XRP community, reflecting concerns about Ripple’s management of XRP.
In conclusion, Schwartz shared two fundamental beliefs: that prices are rational and already take into account expectations, and that the market may have a negative view of radical changes that lack clear benefits. Schwartz’s engagement provided valuable insights into Ripple’s strategic considerations and sparked a broader discussion about the future trajectory of XRP.