A report prepared by Ripple employees has revealed the company’s intention to hold onto 25 billion XRP, which accounts for 25% of the total supply, in order to fund operations and generate a profit. The remaining 75 billion XRP will be distributed to the market to incentivize participants such as market makers, consumers, and gateways to use the XRP Ledger and ecosystem dApps.
The document, which dates back to November 2014 and has recently resurfaced within the XRP community, outlines Ripple’s original plan to retain 25% of the total XRP supply and distribute the rest to market participants. The report delves into the Ripple Protocol, offering a comprehensive breakdown for finance professionals, including its functionality, key features, potential use cases, settlement mechanisms, and more. The document was authored by Patrick Griffin and Wellington Sculley from Ripple’s Business Development department, along with Phillip Rapoport, Head of Markets, and Roman Leal, a former payments analyst from Goldman Sachs.
One of the key findings from the report was the allocation of tokens, with Ripple Labs intending to keep 25% of all XRP issued for operational funding and profit generation, while distributing the rest to encourage the participation of market makers, gateways, and consumers to utilize the protocol. The report emphasizes the significance of the predetermined supply of 100 billion XRP in ensuring the value of XRP appreciates.
The authors also addressed potential criticism regarding the impact of Ripple’s actions on the price of XRP, asserting that the company’s incentives are aligned with those of the protocol’s users, with both aiming for the protocol to reach its full potential and scale. Ripple has clarified that it does not plan to sell all of its XRP, with 25% being retained for profit generation and operational funding, while the rest is distributed to incentivize market participants to utilize the protocol.
The report also explores the potential use cases of the Ripple Protocol and XRP cryptocurrency, highlighting Ripple’s focus on providing a free, real-time settlement infrastructure for global commerce. It outlines the advantages of using Ripple technology for various applications, such as optimizing internal payment operations for banks and enabling payment processors to offer real-time settlement. Additionally, it notes that XRP is currently trading at $0.4857, with a trading volume of $400 million.
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