Blockchain venture, Ripple, has announced its intention to place 55 billion XRP, the native digital asset to the Ripple Consensus Ledger (RCL), into a cryptographically-secured escrow account by the end of 2017. “By securing the lion’s share of our XRP, investors can now mathematically verify the maximum supply of XRP that can enter the market,” it says.

Ripple uses escrow to establish 55 contracts of one 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.

“We’ve shared our vision of an Internet of Value in which money moves like information moves today. Key to realising that vision is lowering the cost of payments, especially in emerging markets. Financial institutions can use XRP to exactly that end if XRP is highly liquid,” Ripple says. “To build XRP liquidity, we have been mindful over the years about how we distribute XRP. Our goal in distributing XRP is to incentivise actions that build trust, utility and liquidity. We engage in distribution strategies that we expect will result in a strengthening XRP exchange rate against other currencies. We have a proven track record of doing just that.”

It has, however, have heard concerns in the market about uncertainty surrounding its ongoing XRP distribution. At the heart of this is the notion that Ripple might one day sell its 61.68B XRP in the market at any time. But the venture insists that’s a bad scenario for Ripple. “Our self-interest is aligned with building and maintaining a healthy XRP market. Today we are permanently removing that uncertainty by committing to place 55 billion XRP into a cryptographically-secured escrow account by the end of 2017.”

Further details here.

 

by Scott Thompson
Scott is Senior Editor at IBS Intelligence. You can follow him on Twitter and contact him at: Scott.Thompson@ibsintelligence.com
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