XRP Reserve Fee Under Scrutiny by Prominent Crypto Figures
- WBOYOriginal
- 2024-08-14 21:16:11699browse
The XRP reserve requirement for native wallets has recently come under scrutiny by prominent figures in the crypto community. In a Tuesday post on X, Davinci
A recent discussion on X highlighted the XRP reserve requirement for native wallets, sparking varying opinions within the crypto community.
Prominent Bitcoin investor Davinci Jeremie raised concerns about the cost of opening an XRPL account compared to accounts on rival networks.
According to Jeremie, opening an XRP account incurs a cost of 20 XRP, which roughly translates to $11 at the current value of XRP.
This reserve requirement, Jeremie believes, could pose a significant hurdle for some individuals considering adopting XRP, especially given that blockchain networks like Bitcoin and Ethereum do not stipulate a reserve amount in wallets.
Reacting to Jeremie's post, the founder of DogeBella shared an experience that further highlighted the challenges posed by the XRP reserve.
“It first freaked me out when I couldn't send my XRPs back to a CEX to sell it,” the DogeBella founder narrated in response to Jeremie's post.
It is important to note that the XRP Ledger network reduced the minimum operating balance of an XRP wallet to 10 XRP following a unanimous agreement by validators some years ago. However, the existence of this reserve requirement remains a point of contention among critics in the community.
In response to Jeremie's post, an XRP proponent attempted to justify the reserve by explaining that it does not actually “cost” anything to open an XRP wallet.
The commenter highlighted that the reserved balance is fully refundable and can be withdrawn if one chooses to close the account or reset the wallet.
“The correct answer is it doesn't cost you anything. XRP is reserved and is returned / sent anywhere (including an exchange) if you close the account or reset the wallet,” the commenter stated.
Meanwhile, the XRP Ledger community has maintained that the reserve requirement serves to protect the public network from excessive growth due to spam and malicious activity.
Their aim is to ensure the ledger's growth aligns with real tech advancements.
To achieve this, an account must hold a minimum amount of XRP. However, the XRP reserve is not inactive; it can be utilized to pay for transaction fees. The XRPL ecosystem encourages users to view the 10 XRP reserves as pre-funding an account to cover future transaction fees.
Interestingly, some community figures, like Artur Kirjakulov, CEO of XPMarket.com, posit that the minimum operating XRP balance requirement could actually be a bullish factor for XRP.
Kirjakulov's theory suggests that as more people create wallets, it generates natural demand. He believes the mandatory reserve fee could create a demand chain that impacts XRP's price.
This perspective is influenced by the fact that there are now over 5 million XRP wallets, each requiring a reserve of 10 XRP. This translates to a significant amount of tokens—50 million XRP—being largely idle, which could impact the market.
The above is the detailed content of XRP Reserve Fee Under Scrutiny by Prominent Crypto Figures. For more information, please follow other related articles on the PHP Chinese website!