© Reuters
- On January 1, Ripple, the blockchain-based digital payments network, is set to release a significant $620 million in XRP, the cryptocurrency that powers its platform. This release is part of Ripple’s ongoing mechanism to control the total supply of XRP using an escrow system, in place since 2017.
The planned release will be through three transactions from two specific wallets, known as “Ripple (22)” and “Ripple (23)”. This action follows Ripple’s previous release of 1 billion 310 million XRP through weekly transactions.
Ripple’s escrow system is designed to ensure regular distribution of XRP in the market. In doing so, Ripple aims to maintain a balance in the supply of XRP, thereby avoiding any potential glut in the market. Escrow releases one billion tokens every month, a practice that Ripple has always followed to effectively manage the liquidity and total supply of XRP.
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