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- 🎉 [Gate 30 Million Milestone] Share Your Gate Moment & Win Exclusive Gifts!
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Ripple Doesn’t Technically Hold 38 Billion XRP Tokens, Leading Software Engineer Says
Mayukha Vadari, senior software engineer at RippleX, has noted that blockchain company Ripple does not technically hold the 38 million XRP in escrow
In this case, the XRP Ledger itself acts as the escrow agent since the funds are locked in smart contracts
"Technically (and legally), the escrow funds are temporarily being held by the network, not Ripple," Vadari explained
It is worth noting that Ripple cannot access these funds before the unlock time. Hence, the tokens are under the management of the escrow agent
This echoes an earlier statement made by Ripple CTO David Schwartz, who clarified that the funds in an escrow are not held by the party who put them into escrow
Earlier this year, Ripple CEO Brad Garlinghouse stated that the company owned more than $100 billion worth of XRP tokens. However, ownership does not equal control in this case
In its now-discontinued quarterly markets report, Ripple distinguishes between the tokens that the company itself holds and the tokens that are locked in escrow. According to its last report, Ripple held roughly 4.9 billion tokens while 38 billion tokens remained locked in escrow on the XRP Ledger
The company initially locked 55 billion XRP into escrow to assuage concerns about potential selling pressure stemming from tokens flooding the market