For some time now, a lot of people within the crypto space have been complaining about some of the most popular cryptos that have been stuck at low prices for long. Two of these are TRX and XRP.
One major factor contributing to this situation is the huge number of the coins available. Ripple, the producer of XRP, locked about 55% of the 100 billion XRP coins it created. That’s about 55 billion XRPs locked in Escrow.
Granted, market forces of demand and supply are very much active in the crypto market just like any other economic sector, meaning that XRP prices are suppressed due to the high number of the tokens available for trade.
Now, XRP fans on twitter led by one Crypto Bitlord have come up with what they deem as a solution to stimulate XRP prices. They want Ripple to destroy half of the XRP locked in escrow.
The petition which was started by Bitlord has currently being signed by over 750 people as they aim for over 1,000 signatures.
XRP Escrow System
Every month, 1 billion XRPs are released into the market for sale. Ripple uses the proceeds from the sales to stimulate the XRP ecosystem – supporting innovative startups and funding development for new XRP-based payment solutions and use cases.
The unsold XRP is locked back into a new Escrow transaction.
It’s A Bad Deal For Ripple
While burning a lot of XRP could surely instigate a positive outcome in terms of price and possibly appease many XRP aficionados, it wouldn’t be exactly a smart move for Ripple as the company runs the risk of wasting that much XRP that could have been sold instead of burned.
However, payment solutions like xRapid that use XRP have a mechanism that ensures some coins are burned during transaction processing. Over time, this may work to decrease the amount of XRP in circulation, and in turn, increase demand and price. Ripple is yet to respond to the requests.