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The XRP Ledger (XRPL) account and object reserve fees drop by a whopping 90%, potentially paving the way for greater network participation.
Prominent XRP community figure Vet called the public’s attention to the development today, noting that XRPL’s account reserve is now 1 XRP ($2.73). This represents a significant reduction of 90% from the previous fee of 10 XRP ($27.3).
XRPL Labs Founder and XRP Proponents Advocate for Reserve Fee Reduction
It is worth mentioning that the fee was previously set at 10 XRP to prevent the creation of spam and inactive accounts on XRPL. While the move protected the ledger from spammy activities, some XRP proponents, like XRPL Labs founder Wietse Wind, argued that the requirement had impeded the growth of the blockchain.
In October, he voted in favor of a proposal to drastically reduce the account reserve fee by 90% from 10 XRP to 1 XRP. As reported earlier, Wind opined that lowering the fee could bolster accessibility to XRPL, particularly for users residing in regions with limited purchasing power.
Besides Wind, other crypto enthusiasts, such as Bitcoin investor Davinci Jeremie and XRPL-based protocol SpendTheBits, shared a similar sentiment. In November 2023, SpendTheBits created an X poll, asking XRP enthusiasts to vote on what they believe should be the appropriate fee for activating a wallet on XRPL.
Notably, 54.3% of the participants voted for a 90% reduction to 1 XRP in the account reserve fee. Several months after the community revealed its preference for this fee, Wind voted on a proposal in October to implement this requirement.
Excess XRP Freed Up in Accounts Amid Object and NFT Reserve Fees Reduction
In addition to the reduction in account reserve fee, the reserve fee for trustlines, objects, or NFTs also dropped 90%. The fee dropped to 0.2 XRP ($0.546) from its initial value of 2 XRP ($5.46).
Following this reduction, the excess XRP tokens previously locked in reserves are freed up in users’ on-chain wallets. Popular XRPL-based crypto wallet Xaman confirmed this development in an X post today, emphasizing that its users can now access and use the excess XRP.
Highlighting the significance of the reduction, Xaman emphasized that operating on XRPL is now 10x cheaper compared to before.
📣XRPL Reserves Have Been Dropped
It's now 10x cheaper to start operating on the XRPL!
Account Reserve: 1 XRP (was 10 XRP)
Trustlines/Objects/NFTs: 0.2 XRP (was 2 XRP)Excess XRP is freed up in your Xaman Wallet—ready to use now!
— Xaman Wallet 🪝 (@XamanWallet) December 2, 2024
The significant reduction in account and object reserve fees coincides with a rapid surge in XRP’s price, which has increased by 443.15% in 30 days to $2.73. Notably, a month ago, the initial 10 XRP ($27.3) reserve fee was worth $5.