Network validators can force Ripple to burn XRP tokens, regardless of the fintech company’s position on this issue, said its technical Director David Schwartz.
The message Ripple left under the post of one of the Twitter users. The latter was interested in whether it is possible to burn 50 billion XRP of the company if the nodes, validators, and the community decide.
According to Schwartz, Ripple “can’t do anything” to prevent this.
“Public blockchains are too democratic,” said Ripple’s CTO.
In 2017, the company placed 55 billion XRP on a secure escrow account. As each of the 55 contracts expires, 1 billion XRP tokens are sold to institutional investors to encourage market makers.
In March 2020, Ripple CEO Brad Garlinghouse admitted that the company would not have made a profit without XRP sales, although it sharply reduced coin sales in the second half of 2019.
In the second quarter of 2020, XRP sales reached an annual high of $32.55 million.
Earlier, Ripple announced the purchase of its own tokens in the third quarter for $45.55 million to maintain further “healthy markets.”
Unralated question: If Nodes, validators and the community at large got together and we agree that its better for the community to burn the 50 billion XRP ripple has in escrows would that be possible? 🤔
— IKHOR [FIAT-Limpator] (@ethanjames0394) December 2, 2020