Ripple’s Chief Technology Officer, David Schwartz, has openly supported burning XRP tokens to enhance the token’s economy. His comments came during a discussion on X (formerly Twitter) with former lawyer and crypto entrepreneur Scott Chamberlain, who suggested a more intricate approach to improve XRP’s programmability. Schwartz emphasized that burning XRP could make the token more scarce, potentially increasing its value while lowering transaction fees on the network.
Chamberlain proposed a two-part solution involving “Hooks” and a new Codii token. The Hooks feature is intended to introduce programmability to the XRP Ledger (XRPL), and Codii would cover the costs of the related fees. He still noted that the users could stake XRP to create Codii, which would be used to make payments and conduct transactions. He further said that his solution would stabilize the fees charged for transactions while enabling additional features on the network.
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Schwartz Criticizes Codii as an Unnecessary Complication
While strongly supporting this notion, Chamberlain never changed Schwartz’s mind, who called the idea too complicated. He insisted that it is unprofitable to burn XRP because other methods can yield similar results, such as lowering transaction fees. Schwartz pointed out that XRP fees are fixed and do not change whether the fees are paid in XRP or any new token, such as the Codii, making integrating another token useless.
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Schwartz also noted that issuing a new token could cause many problems for XRP holders. He said that he had certain reservations about the issues with dilution losses, meaning that users would have to carry both XRP and Codii to avoid getting a penalty. Further, he said that having two tokens could complicate the way they make transactions and make the fee increase structure confusing.
In his view, burning XRP simplifies the system and preserves the network’s efficiency without introducing unnecessary hurdles for users.
Conclusion
David Schwartz’s preference for burning XRP reflects his desire for a simpler, more efficient approach to improving the network’s economy. He firmly believes that introducing new tokens like Codii would only complicate the process and burden users with additional steps and risks.
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.