- Ripple cannot access its 38 billion XRP on the trust account-XRPL Smart-Contracts block premature approval.
- The trust system only works fully automatically and protects the XRP markets from sudden interruptions in the token offer.
Ripple, one of the largest blockchain companies, recently cleared doubts about the fate of 38 billion XRP tokens, which are kept in a trust account. The tokens were never directly owned by Ripple, even if it was their parent company. In an interview with Mayukha Vadari, senior software engineer at Ripplex, she explained that these tokens are not even stored by Ripple, but are under the control of the XRP Ledger.
Cari explainedalthough Ripple controls the funds, they would be the sole reservation of the Smart Contracts that are controlled by the XRP Ledger. As a result, every possibility is excluded that Ripple accessed them, in whatever way. This secure the function of the decentralized, autonomous protocol that manages the funds. She continued:
“Technically and legally, the trust money is temporarily held by the network and not by Ripple.”
The reason for this agreement is that Ripple wants to strengthen confidence in the markets and to take the fear of rapid changes in the markets as a result of massive token deposits. Ripple initially deposited the 55 billion XRP tokens in a trust account in order to dispel the fears that the value of XRP in the markets could be influenced. 38 billion of these tokens remain blocked and are managed by the network loyalty hand protocol.
Fully automated XRP token releases secure the market stability
The release of these tokens is completely subject to the control of the XRP Ledger, which was created by Ripple. Therefore, human interventions cannot change the schedule for the release of these tokens on the part of the Ripple employees or other people. Vadari continued this point and explained that even Ripple can never unlock these funds before the time to unlock, which in turn confirms the fact that Ripple never has the keys to these assets.
This automated system was structurally set up with the aim of promoting transparency and predictability in the market, which Ripple sees as a priority in order to ensure the long -term trust of investors. By using this inherent function of the XRP Ledger, Ripple guarantees to all market participants that sudden changes will never occur when releasing token that could destabilize the value of XRP.
Ripple CEO Brad Garlinghouse said that the company checked more than $ 100 billion in XRP, but that does not mean that you have 100% control. Ripple cannot use a trustee itself, a protection against token management problems.
Ripple holds 4.9 billion XRP – without the control of the blocked supply
In the quarterly market reports of Ripple, which have been discontinued since then, the company has very clearly differentiated between the XRP he controlled and the tokens blocked in a trust account. According to the last report, the company itself kept around 4.9 billion XRP tokens, while the 38 billion token in a trust account was still technically belonging to Ripple, although they are controlled by the XRP Ledger.
This distinction was important for Ripple to tell the markets that Ripple has an enormous amount of XRP under his control, the decision on how the stored funds can be used, but is only located on the decentralized XRP Ledger. It is an autonomous mechanism that definitely defines the schedule for the release of XRP and protects investors from any uncertainty.
Although Ripple has the majority of the 55 billion XRP that were paid into the trust account when founding, it cannot use the 38 billion that were paid into the trust protocol until the preliminary time of approval. This guarantees that no single company, even not ripple itself, has control over the entire token offer of a market-one of the decisive features of a decentralized XRP network.
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