David Schwartz Ripple’s Chief Technology Office answered public discussions about XRP distribution while addressing XRP Ledger’s original development timeline.
People restarted their discussions about the XRP distribution framework after learning about the fairness of initial XRP allocations while investigating Ripple’s involvement in the distribution process.
The XRP Ledger was created by David Schwartz, Jed McCaleb, and Arthur Britto for Bitcoin replacement purposes. They worked together to build an energy-saving digital payment system according to written XRPL website history.
The essential development for the ledger’s operational readiness was finished in June 2012. The newly formed company NewCoin received 80% of the XRP supply, which was then transformed into OpenCoin before it became Ripple.
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Clarification on XRP Allocation
Through his X response, Schwartz clarified the reasons behind giving most of the XRP to OpenCoin, a company established for this transaction. The user questioned when the decision to allocate XRP to OpenCoin should have been made, stating it should have been established in the planning stage instead.
Schwartz confirmed he was not significantly involved during XRP distribution; however, he noted that the XRP allocation agreement had already been set before September 17, 2012.
According to him, such XRP distribution followed correct market-related procedures. Schwartz explains how technology developers maintain their share of value by matching a system that functions as a free market.
The XRP Ledger operates differently than traditional blockchain protocols through its non-adversarial consensus models; thus, he disregarded any objections to fairness.
An X user by the name Vet expressed their opinion that XRP was distributed without fairness or equal treatment, which caused additional controversy in the community. Schwartz defended that it was determined fair should follow market principles, and no injustice was present in the XRP allocation process.
The documentation he provided from that dating agreement showed how this distribution method was determined in advance and did not result from any hurried decisions.
The escrow system established by Ripple exists to establish market stability and defend against manipulation within the XRP financial operations.
The ongoing blockchain discussions demonstrate how difficult it is to define fairness when running blockchain projects while simultaneously exposing the unique distribution approach of the XRP Ledger founders.
Also Read: XRP Could Crash to $1.5 Soon, Here is What Happened
