The possibility to Ripple the ‘burning’ of it blocked XRP funds has come up for discussion. This development could become an important topic of discussion if the XRP Community continues to shout about XRP’s tepid price action.
Can Ripple Burn Its Locked-Up XRP Funds?
In a after on his X (formerly Twitter) platform, former Ripple Director Matt Hamilton suggested a way in which Ripple could potentially “burn” its XRP holdings in escrow lockups. He stated that Ripple could disable the master key on the destination account, which usually receives these blocked funds.
Hamilton believes this achieves the same purpose for which tokens are burned, as they become accessible to no one when released from escrow. His statement was part of a larger discussion among some members of the XRP community about what to do with the frozen funds if it was necessary to get rid of them.
Crypto sleuth Mr. Huber had joined the discussion just like him declared that Ripple cannot burn these blocked funds because the decision is not up to them. Ripple will evidently need approval from validators on the XRP ledger before they can take such a step.
From the discussion you could conclude that they were alluding to the possible blocked funds encrypted on the XRP Ledger. As such, Ripple needs the permission of these validators to change the code and burn that money. However, Hamilton’s comment was more focused on Ripple burning this money by simply disabling access to the destination account.
Bulls maintain control of price | Source: XRPUSD on Tradingview.com
Ripple burning blocked funds and its meaning
Ripple burning their escrow funds is something that could easily pique the interest of the XRP community. This is true, especially given the recent deliberate conversations about Ripple suppressing the price of XRP. As such, there could be calls for Ripple to burn some of these tokens to show its commitment to the growth of XRP.
However, from all indications, this is not a simple process, and there is no guarantee that it will affect the price of XRP. At some point in the discussion XRP YouTuber Maan Lambo alluded to to the fact that Ripple’s XRP holdings are not part of those on the open market. It also has reported that Ripple’s XRP transactions do not affect prices on crypto exchanges.
Therefore, there is a chance that Ripple burning its XRP holdings (particularly the escrow funds) may not impact the price of XRP on the open market. Ripple probably knows this and that’s why they didn’t make such a move. Instead, to provide XRP with stability, they give back most of their value unlocked tokens to secure.
Featured image from Watcher Guru, chart from Tradingview.com
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