Popular blockchain technology company, Ripple, has recently announced it was returning 800 million XRP tokens to its escrow wallet just after unlocking 1 billion tokens for this month. News of the event was reported by the prominent blockchain analytics and tracking platform Whale Alert.
Ripple’s Commitment To Preserve Its Ecosystem
In a series of tweets released earlier today, Whale Alert confirmed that the return comes after Ripple released 1 billion tokens for the month of August. According to the tracking and analytics company, 300 million XRP with a whooping value of $209 million were safely locked back in the Ripple Escrow wallet.
Additionally, the Whale Alert also revealed that a further 500 million XRP tokens have also been locked back into escrow. The 500 million tokens, which are worth over $349 million were locked in a controlled account. The XRP tokens, which are now safely locked back in escrow, were originally unlocked in two batches on the 1st of August.
The move by the firm demonstrates its intention to execute an organized and properly planned release of its token reserve, showcasing utmost prudence and responsibility in its approach to token management.
XRP price at $0.69 | Source: XRPUSD on Tradingview.com
A Brief Overview of XRP’s Escrow System
Ripple designed the escrow system for locking its XRP tokens in 2017. The company later proceeded to lock away 55 billion XRP tokens, making up about 55% of its token supply, in a series of escrow on its ledger. Each escrow held 1 billion XRP, which Ripple intends to unlock monthly over 55 months. According to the escrow agreement, Ripple will release 1 billion XRP on the first day of each month.
The objective of this process is to provide a sense of control and predictability on token supply. Therefore, the ledger mechanics are enforced through consensus to allow the unlocking of 1 billion XRP at the established time.
The controlled release of XRP also provides a measure of stability within the Ripple ecosystem. The release of the token forms part of the company’s mission of meeting investors’ demands while supporting the growth of the XRP space.
In line with these objectives, Ripple released 1 billion XRP in five batches – 100 million XRP, 400 million XRP, 200 million XRP, another 100 million XRP, and 200 million XRP – for the month of August.
Featured image from iStock, chart from Tradingview.com