Over 11 Mln XRP Burned So Far

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