Ripple update: Honest question about Ripple Labs / XRP..
If XRapid / XCurrent were to become globally adopted, would it makes sense for one company to hold the reigns on inflation/deflation? I understand they have the remaining XRP in escrow, but is that enough? One thing I’d like to propose that may not be very popular, but in all seriousness, should Ripple consider giving custody of it’s 55+ billion remaining XRP over to the Federal reserve or a global reserve, or something like this? Are economies and their inflation/deflation really going to be left in the hands of Ripple? I have serious doubts about this authority. I also get that many people don’t trust the Fed, but what’s more likely for widespread adoption?
From Ripple’s site:
We use Escrow to establish 55 contracts of 1 billion XRP each that will expire on the first day of every month from months 0 to 54. As each contract expires, the XRP will become available for Ripple’s use. You can expect us to continue to use XRP for incentives to market makers who offer tighter spreads for payments and selling XRP to institutional purchasers
We’ll then return whatever is unused at the end of each month to the back of the escrow rotation. For example, if 500M XRP remain unspent at the end of the first month, those 500M XRP will be placed into a new escrow account set to expire in month 55. For comparison, Ripple has sold on average 300M XRP per month for the past 18 months.
This power will be Ripple’s for the next 5 years, and who’s to say they cant make more than the 100 billion XRP?
About Ripple (XRP)
Ripple connects banks, payment providers and digital asset exchanges via RippleNet to provide one frictionless experience to send money globally. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets. XRP is the fastest and most scalable digital asset today.
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