Regarding a decision made by Ripple executives on their Escrowed XRP token donation to the XRP Ledger Foundation (XRPL), the CTO, David Schwartz, criticized the infeasible effects of such a move. The plan was drawn with the consideration of Panos Mekras, the co-founder of Anodos Finance, who suggested the XRPLF may possess a better position for XRP holdings that benefit the XRP community.
Feasibility challenges highlighted by Ripple’s CTO
Schwartz emphasized the complications with token transferability and that the control mechanism for asset use is unclear. Acknowledging the Uncertainty: He put forward that there could be a lot of controversy in coming up with measures that try to foresee the future. As a compounding factor, he got the community of XRP support to think over the significance of the tokens and take control for reasons like responsibility.
In response to a recommendation from one community member, Mr. CleanX, the issue of pre-mining as a potential distribution technique arose. Schwartz then explained that such an idea does not tally with the nature of XRP being a grey matter that does not have mining mechanisms. He acknowledged Ripple‘s case on the distribution systems of XRP, stressing that they were more complicated than they appeared to be and overcame more obstacles than initially expected.
Counterproposal for independent foundation
There is a disagreement between Schwartz and supporters of XRP tokens’ donation. XRP remains in an escrow account as over Schwartz’s vision that it is not feasible. However, the other community members, in a bid to counter this, responded to him.
Drew Surmenian suggested setting up a standalone foundation to control the initiative and giving grants for XRP marketing, leading to acceptance and implementation of the Ripple protocol and ecosystem. This concept aims to tackle problems associated with use and distribution while reflecting on the growth and development of XRP.
Following the conversations in the XRP community surrounding using the escrowed XRP for token distribution, various thoughts on its prospects have been shared. Their authors are different.
Schwartz was especially concerned with the risk of impracticalities in transferring control and placing that control in responsible customer decisions. At the same time, other community members take independent steps, like establishing a private foundation. The sum of these conversations will probably determine the path the company will follow in the launch of its coins and expansion into the ecosystem.
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