cryptonews.net
Since the launch of the XRP Ledger (XRPL), over 11 mln XRP tokens have been burned. Compared to other assets, XRP burn has received little attention, and opinion is divided on whether the current burn mechanism can significantly increase the value of XRP in the future. XRPSCAN data shows that the network has burned 11.04 mln XRP to date.
The XRP burn mechanism has a clear purpose: to fight spam transactions, and not specifically prop up the price of the asset. To do this, the network charges a fee for each XRP transaction and subsequently burns the collected fees. The network is designed to reduce the amount of XRP burned as the value of the asset increases.
David SCHWARTZ, CTO of Ripple, confirmed this in a tweet this month. In response to a question about how long it would take to burn through the maximum XRP supply of 100 bln, Schwartz stated that he does not expect the XRP supply to ever be fully depleted. He emphasized that as the supply decreases, the value of XRP increases, but the burning rate decreases accordingly.
Image: Binance Academy