• Ripple has been engaged in a long-drawn battle with the U.S. Securities and Exchange Commission (SEC) over the sales of XRP tokens, keeping the XRP price subdued for a long time.
• Former Director of Developer Relations at Ripple, Matt Hamilton recently suggested that Ripple could burn all of its holdings by disabling the master key on a destination account, thus preventing them from flooding the market with XRP.
• The debate now revolves around whether validators of the XRP ledger would agree to burn the XRP or stay under Ripple’s influence.
Ripple’s Battle With SEC Over XRP
Ripple has been engaged in a long-drawn battle with the U.S. Securities and Exchange Commission (SEC) over the sales of XRP tokens, causing its price to remain subdued for some time now.
Matt Hamilton’s Suggestion To Burn All Holdings
Matt Hamilton, former Director of Developer Relations at Ripple suggested that Ripple could render its entire future escrow funds inaccessible to everyone, including themselves just by disabling the master key on a destination account where those funds are set to be released from escrow. This suggestion was made due to concerns raised by members of the XRP community about chances of Ripple pouring tens of billions worth of XRP into markets.
Decentralization Of Asset Debated
This ownership structure has also made crypto community members question decentralization of asset as it is held in trust by Ripple for balancing markets which puts them in control over significant supply of token.
Validators Could Agree To Burn The Tokens?
The debate now revolves around whether validators of the XRP ledger would agree to burn these tokens or stay under influence of ripple if it decides to go ahead with this proposal and disable master key on destination account rendering it inoperable thus making funds released from escrow inaccessible to anyone?
Former executive Matt Hamilton’s suggestion provides an alternative solution that would prevent ripple from flooding markets with XRP but only validators have power over burning these tokens which is yet to be seen how they decide upon this issue if proposal is put forward by ripple itself.