- XRP supply risks rising as inactive wallets silently lock away billions
- Expert flags missing XRPL safeguard as a threat to long-term XRP liquidity
- Dead man’s switch proposal resurfaces amid growing self custody concerns
Leonidas, a well-followed XRP community expert on X, has reignited debate around long-term asset safety on the XRP Ledger after warning that inactive wallets could quietly drain billions in XRP from circulation. He stressed that self custody holders currently lack any built-in inheritance safeguard, a gap he noted leaves XRP permanently inaccessible after death or loss of private keys.
The concern extends beyond individual losses and touches the wider XRP ecosystem, as every inaccessible wallet slowly reduces the circulating XRP supply.
Over time, that reduction could affect liquidity and market balance, with Leonidas cautioning that the impact may grow as more users adopt self custody. He pointed to an earlier XRP Ledger proposal commonly described as a dead man’s switch, which focuses on automatic asset transfers after prolonged account inactivity.
Under the design, XRP would move to a pre selected beneficiary wallet, with the transfer executing automatically once inactivity conditions are met.
Also Read: Vitalik Reveals Ethereum’s 2026 Plan to Reclaim Privacy and User Control
Proposed XRPL safeguard targets long term asset loss
The concept was initially introduced by XRPL contributor Kris Dangerfield, who highlighted repeated cases where forgotten private keys erased access to valuable holdings. Early discussions generated interest within the community, but development momentum later slowed without full implementation.
The mechanism operates directly at the protocol level rather than through third parties, allowing users to define inactivity periods and beneficiary details within their accounts. Once triggered, the XRP transfer would require no manual approval, preserving decentralization while adding practical protection.
Leonidas emphasized that many holders avoid self custody due to inheritance concerns, which pushes some toward exchanges despite known counterparty risks. A built in fail safe could shift that behavior toward private wallets and encourage longer term independent XRP storage.
Inactive wallets pose growing risk to XRP circulation
Dormant wallets already hold millions of dollars worth of inaccessible crypto assets, and that figure could continue rising as adoption grows. Lost XRP does not return to circulation under current rules, and this slow erosion may eventually influence supply dynamics.
Leonidas added that the proposal does not alter ownership rights and activates only under clearly defined inactivity conditions. The balance allows users to retain control while planning for unforeseen events, while supporters see it as demand for on chain asset protection tools.
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