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XRP Army Discovers Ripple’s Intent to Hold Most of XRP for Development Efforts
Ripple’s recent revelation shook the XRP Army, who discovered it through a company document. Ripple plans to keep a large portion of XRPwith the aim of retaining 25% of the total supply of XRP.
This decision means that Ripple will hold 25 billion XRP tokens valued at approximately $12.5 billion to support its operations and, ideally, generate profit.
Given that only 100 billion XRP tokens will be issued, this hold represents a large portion of the total supply. The document also points out that Ripple does not charge for use of its network because it is not a financial services provider.
Instead, it makes money through its native currency, XRP. By taking 25% of all XRP, Ripple plans to finance its operations and make a profit, aligning its goals with those of its users. As demand for XRP grows, its value should increase, benefiting both Ripple and its users.
Ripple plans to distribute the remaining 75% of XRP, giving incentives to market makers, gateways, and consumers in hopes of increasing usage and scalability of its protocol. The more participants there are in the ecosystem, the greater the demand for XRP, which could increase its value.
A key part of Ripple’s strategy is to use XRP as a bridge currency. The Ripple network is set to make all balances easily convertible to XRP, which simplifies transactions. This means that XRP can act as a universal intermediary currency, facilitating exchange with any other currency on the network.
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Added:
“If XRP is increasingly used as an intermediary currency, users who are unsure of which currency they will need may choose to hold XRP as it readily translates into all other assets on the network. Market makers are one type of user this could happen for, but we can easily think of others as well.”