Ripple to Keep 25 Billion XRP in Reserve for Strategic Use and Profit
  • According to a document written by a Ripple employee, the company has 25 billion XRP (25% of the total supply) to fund its operations and hopes to “profit” if possible.
  • The remaining 75 billion XRP will be distributed to the market to encourage participants, such as market makers, consumers, and gateways, to utilize the XRP ledger and ecosystem dApps.

A document created in November 2014 recently unearthed by the XRP community reveals that Ripple only intended to retain 25% of the total XRP supply and distribute the rest to market participants.

The document provides a detailed explanation of what was then called the Ripple protocol, explaining in detail for financial professionals how it works, its main features, potential use cases, and payment mechanisms. It was written by Ripple’s business development colleagues Patrick Griffin and Wellington Scully, head of markets Philip Rapoport, and former Goldman Sachs payments analyst Roman Leal.

One of the key revelations from the report was the token allocation. The report states:

Ripple Labs plans to keep 25% of all XRP issued as an operating fund (hopefully to make a profit) and distribute the rest to encourage participation among market makers, gateways, and consumers to utilize the protocol.

The report notes that the Ripple protocol architecture dictates that only 100 billion XRP will ever be issued (the current circulating supply is 55.6 billion XRP). This pre-determined supply is important to ensure that XRP’s value rises, the report says.

The four authors also preemptively denied any criticism that Ripple has received since then about whether it would negatively impact the price of XRP. They stated:

Because the number of XRP is limited, as demand for XRP increases, its value should increase. In this way, Ripple Labs believes its incentives are aligned with those of the protocol’s users, both of whom want the protocol to reach its full potential and scale.

Ripple and XRP power global commerce

The report also details potential use cases for the Ripple protocol and the XRP cryptocurrency, noting that Ripple is “one of the few companies innovating at the bottom of the payments stack and focused on providing the world with a free, real-time payments infrastructure.”

He also discussed the benefits of using Ripple technology for various applications: for banks, it will enable them to optimize their internal payment operations and “offer new and enhanced external payment services to their customers.”

It also enables payment processors to offer real-time payments and makes it easier for regulators to monitor and enforce regulatory standards.

Meanwhile, XRP is trading at $0.4857, remaining flat over the weekend as trading volume fell by 50% to $400 million.

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