David Schwartz, Ripple’s Chief Technology Officer, has revealed surprising facts about the intricacies of the company’s XRP assets in a series of tweets. He sheds light on Ripple’s original plan for managing this digital asset.
Ripple’s XRP holdings are divided into two categories: XRP in wallets and XRP locked in escrow accounts, the latter being gradually released into the market each month. A significant portion of released XRP has historically been returned to escrow.
Responding to a tweet by a user named “Mr. Huber,” Schwartz explains Ripple’s options in managing XRP assets. The company faces a binary decision: either maintain the current volume of XRP or initiate a reduction in XRP holdings, with no third option available.
Schwartz discusses Ripple’s original plan to accelerate the reduction of XRP assets. However, considering the current landscape, he candidly admits the inability to envision any plausible series of events that would make this initial plan feasible, expressing skepticism about the tangible benefits of such an approach.
The initial plan involved using giveaways to reduce the XRP supply, but this strategy faced challenges as people began using the giveaways for personal gain once a market price for XRP was established. Ripple explored alternative strategies such as locked sales and using XRP as incentives for partners, but Schwartz notes that almost everything explored equated to selling XRP.