San Francisco-based blockchain company Ripple has once again unlocked 1 billion XRP tokens, as reported by crypto wallet tracking platform Whale Alert.
In 2017, Ripple placed 55 billion XRP tokens into multiple escrow wallets to make the cryptocurrency’s supply more predictable. Each month, the company releases 1 billion XRP, but the actual number of tokens entering circulation is usually less than this amount.
Ripple CTO David Schwartz explained that XRP often remains in the expired escrow until someone, potentially anyone, cancels it. He noted that for administrative ease, many escrows are split into multiple ones that expire simultaneously.
Earlier this year, Schwartz revealed that Ripple’s initial goal was to reduce its XRP holdings as quickly as possible. However, he remains uncertain whether the escrow strategy was a good decision. Although he initially opposed the creation of the escrow, he is still undecided on its effectiveness.
Ripple CEO Brad Garlinghouse has not ruled out the possibility of burning XRP tokens from the escrow, expressing openness to new ideas that could benefit the XRP ecosystem.
Schwartz suggested that blackholing the account where the escrow completes could have a similar effect as burning the escrow, ensuring that no XRP from the escrow could ever enter circulation again.
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