BCGAME - Free 5BTC Daily Bonus!The community XRP has been buzzing about the idea of token burning, especially in the context of new stablecoins like RLUSD. Ripple CTO David Schwartz has decided to clear up any doubts and explain in detail how the XRP burning mechanism works.
The idea that trillions of RLUSD tokens could be moved on the XRP Ledger every day and that this would result in a massive XRP burn has been generating a lot of discussion in the cryptocurrency community. The XRP burn mechanism is a continuous and gradual process. Every time a transaction is made on the network, whether for XRP or RLUSD, a minimal fee in XRP is charged.
When answering pertinent questions on the matter in a recent comment on X, Schwartz was clear in stating that the amount of XRP burned per transaction is very small, typically around 0,00001 XRP.
“The minimum is set by consensus. But if there is a transaction load overload beyond what the network can handle, transactions are prioritized based on fees,” stated Black.
But why is this important? The constant burning of XRP helps reduce the total supply of the token over time. This can have a positive impact on the value of XRP, as scarcity usually increases the value of an asset.
In short, XRP burning is an ongoing process that is essential to the XRP economy. It helps keep the network secure and efficient, and also contributes to the deflation of the token. However, it is important to understand that the impact of the burn is gradual and that the value of XRP is influenced by several factors other than the burn.
At the time of publication, the price of XRP was trading at $2,45, up 2.0% in the last 24 hours. In seven days, the price of the asset has increased by 6.5%.
