when

<p>The XRP community on X (formerly Twitter) has been actively discussing the burning mechanism of XRP, especially in relation to RLUSD tokens. A user recently asked, <em>“What happens when trillions of RLUSD tokens move daily on the XRP Ledger? Does XRP get burned during these transactions?”</em> </p>   
<p>Ripple CTO David Schwartz stepped in to clarify how XRP burning works and what it means for both XRP and RLUSD.</p>   
<h2 class="wp-block-heading" id="h-what-is-xrp-burning-and-how-does-it-work"><strong>What Is XRP Burning, and How Does It Work?</strong></h2>   
<p>David Schwartz explained that XRP’s burning mechanism is a key feature of the XRP Ledger, designed to keep the network efficient and secure. Each transaction, whether for XRP or RLUSD, incurs a small fee in XRP. Unlike conventional fees that are redistributed, this fee is permanently removed—or “burned”—from circulation.</p>   
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
   https://twitter.com/JoelKatz/status/1867374731986710583 
 </div>
</figure>   
<p>The amount burned per transaction is tiny, typically around <strong>0.00001 XRP</strong>, but over time, these small burns reduce the total supply of XRP.</p>   
<h2 class="wp-block-heading" id="strong-how-much-xrp-is-burned-over-time-strong"><strong>How Much XRP Is Burned Over Time?</strong></h2>   
<p>Schwartz pointed out that even with a significant increase in transactions, the impact on XRP’s total supply remains minimal. For instance, if payment systems like SWIFT, Visa, and Mastercard adopted XRP for billions of transactions daily, the annual burn would account for just <strong>0.0075%</strong> of XRP’s supply.</p>   
<p>This highlights that while XRP burning gradually reduces the supply, it doesn’t lead to drastic changes in the short term.</p>   [post_titles_links postid="392791"]   
<h2 class="wp-block-heading" id="h-rlusd-transactions-also-burn-xrp"><strong>RLUSD Transactions Also Burn XRP</strong></h2>   
<p>Ripple’s RLUSD, a stablecoin built on the XRP Ledger, follows the same fee-burning system. Although RLUSD is a separate asset, every RLUSD transaction also results in a small amount of XRP being burned. This means that increased use of RLUSD could lead to a gradual decrease in XRP’s total supply.</p>   
<p>However, Schwartz emphasized that the effect on XRP’s supply remains modest, even with high transaction volumes. Importantly, this mechanism helps the network stay efficient by discouraging spam transactions and ensuring faster processing of critical ones.</p>   
<h2 class="wp-block-heading" id="h-future-of-xrpl">Future of XRPL</h2>   
<p><a href="https://coinpedia.org/news/ripple-minted-13-million-rlusd-stablecoin-across-xrp-eth-network/" target="_blank" rel="noreferrer noopener">Ripple is preparing to launch RLUSD</a>, which could play a key role in the growing stablecoin market, expected to reach <strong>$2.3 trillion</strong>. While RLUSD transactions will contribute to XRP burning, the overall impact on supply will be small yet consistent.</p>   
<p>The combination of XRP burning and RLUSD adoption is expected to have long-term effects on the XRP Ledger’s economy.</p>   [article_inside_subscriber_shortcode title="Never Miss a Beat in the Crypto World!" description="Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more." category_name="News" category_id="6"]

Ripple CTO Reveals Shocking Truth About XRP Burning Process

Table of Contents

CoinPedia News

Other articles published on Dec 13, 2024

Grayscale Joins Race for Spot Solana ETF

Trump’s Team Proposes Major Banking Changes

Solana is the fastest growing blockchain for new crypto developers: report

LINK and AAVE Surges Amid Accumulation By Trump’s World Liberty: Are More Gains On Horizon?

JASMY’s Hidden Bullish Divergence Confirms Momentum Despite Recent Pullback

Riot Platforms Acquires BTC, Total Holdings Reach 16,728 Bitcoin

Join our free newsletter for daily crypto updates!