Ripples Plan to Keep Majority of XRP for Development Purposes Discovered by XRP Army
Ripple has recently shocked its loyal followers, known as the XRP Army, with a surprising announcement found in a company document. The revelation is that Ripple intends to keep a significant portion of XRP, specifically 25% of the total supply.
This decision means that Ripple will hold onto a staggering 25 billion XRP tokens, which are valued at around $12.5 billion. The purpose of this retention is to provide support for Ripple’s operations and, ideally, generate profits.
Considering that only 100 billion XRP tokens will ever be in circulation, this holding represents a substantial chunk of the total supply. The document also highlights the fact that Ripple does not charge fees for using its network, as it is not a financial services provider. Instead, Ripple makes money through its own digital currency, XRP. By keeping 25% of all XRP, Ripple aims to finance its operations and achieve profitability, aligning its goals with those of its users. As the demand for XRP increases, its value should rise, benefiting both Ripple and its users.
Ripple’s plan is to distribute the remaining 75% of XRP by offering incentives to market makers, gateways, and consumers. This strategy aims to encourage the use and scalability of Ripple’s protocol. By expanding the number of participants in the ecosystem, the demand for XRP is expected to grow, potentially driving up its value.
A crucial aspect of Ripple’s strategy is using XRP as a bridge currency. The Ripple network is designed to make all balances easily convertible to XRP, simplifying transactions. This means that XRP can serve as a universal intermediary currency, making it effortless to exchange with any other currency on the network.
The company stated, “If XRP is increasingly used as an intermediary currency, users who are uncertain about which currency they will need may choose to hold XRP since it can readily be converted into any other asset on the network. Market makers are one example of users for whom this could be applicable, but there are undoubtedly others as well.”
Tags: Ripple (XRP)