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Title: Ripple CTO Explains XRP Burn Mechanics Behind Ripple USD (RLUSD) Stablecoin
In a recent statement, Ripple’s Chief Technology Officer (CTO), David Schwartz, clarified the XRP burn mechanics behind Ripple’s upcoming stablecoin, RLUSD. The move aims to create a more secure and transparent infrastructure for Ripple’s ecosystem.
Ripple announced plans to launch RLUSD in late 2024, which would have a one-to-one ratio with the US dollar. However, the recent transfer of 580 million XRP to an unknown wallet has sparked discussions about the implications on Ripple’s total supply.
Schwartz explained that this large-scale transaction is part of the company’s plan to maintain a stable and decentralized network. The CTO emphasized that the burn mechanism is not only essential for the RLUSD launch but also critical in preserving XRP’s integrity as a digital asset.
According to reports, a significant portion of the transferred XRP will be burned or destroyed permanently, reducing Ripple’s total supply by a small percentage. This strategic move aims to create a more transparent and decentralized system, eliminating any potential centralization threats to the network.
Schwartz reiterated that Ripple’s primary focus is on its RLUSD stablecoin launch and ensuring the stability of its ecosystem. The CTO emphasized that these developments are crucial for XRP’s long-term sustainability and growth as a digital asset.
Ripple’s efforts have led to significant market interest, with experts weighing in on the implications for the XRP price.
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Source: u.today
