David Schwartz stated that XRPs can be burned if the community wishes.
Ripple, a blockchain giant, holds half of the supply of cryptocurrency XRP and has had a lot of trouble with this issue in the past. However, Ripple is constantly trying to refute allegations of price manipulation, and it seems to have managed to do so somewhat lately.
However, the Ripple technical chief made a recent statement that scared users a bit.
Content Guide
XRPs Can Be Incinerated
XRP Ledger Changes
How Does Ripple Price Affect?
XRPs Can Be Incinerated
Ripple chief technology officer David Schwartz admitted that regardless of whether the decision was accepted or not, the company could be forced to burn 48 billion XRP tokens by validators.
In a post he made on Twitter, Schwartz confirmed that the community can vote for Ripple to burn the entire XRP token supply and stated that Blockchain is "very democratic . " "There would be nothing Ripple could do to stop it , " Schwartz said on the subject . He used his words.
XRP Ledger Changes
XRP Ledger changes require 80% approval from the ledger's validators, and the changes are enabled if they stay above this threshold for two weeks. In June, validators at the XRPL specifically voted to adopt a new amendment called the "Change of Control" without Ripple 's support.
The change involved the activity of users to write checks each other for a predetermined amount of XRP that could be used at a later time .
In addition, Schwartz's statement came after the news that occurred in November last year that Ripple may decide to unilaterally burn the excess supply. When these announcements were made at the time, Stellar had reduced the XLM token supply from 105 billion to 50 billion.
How Does Ripple Price Affect?
In fact, Ripple has been constantly accused of influencing the XRP price. Ripple has been criticized recently for routinely selling tokens. The firm has sold an average of 196 million XRP per month since December 2017, according to a report released by XRPArcade in early 2020.
However, Ripple stopped selling XRP in the second and third quarters of this year and started buying back tokens to support the price. In the third quarter, the firm bought $ 45.5 million worth of XRP.
If a token is burned, the XRP value is normally expected to increase. Because the amount of XRP in the market will decrease. This will result in an increase in price. However, as XRP is a controversial cryptocurrency, it is also thought that burning the token could have an adverse effect.
In addition, it is worth noting that the XRP price has performed well lately and analysts expect the increase to continue.
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