a a discussion arose Within the cryptocurrency community on the reasons behind XRP’s fixed supply of 100 billion tokens. For years, enthusiasts and investors have wondered why Ripple chose such a large number when most cryptocurrencies operate with much smaller caps. Ripple Chief Technology Officer David Schwartz recently addressed questions regarding social platform X, highlighting the considerations that guided the initial design of the XRP ledger.
Technology platform supporting 100 billion supply of XRP
David Schwartz was one of them. He was part of the original architects behind XRP and the XRP Ledger in 2012, and as such has unparalleled insight into the tokenomics of cryptocurrencies and the rationale that shaped their design. his reply In response to questions about XRP’s 100 billion supply design, it became clear that this decision was rooted in technical precision and a deliberate effort to balance the functionality of the token’s architecture.
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The first layer of reasoning behind the supply of XRP lies in its technical design. According to Schwartz, leisure developer We found a number that can properly divide the token. This level of divisibility allows XRP to function in both high-value institutional payments and small-scale everyday transactions.
Equally important was the need for the total supply to fit neatly within a 64-bit integer, a standard data type used in computing to store numbers efficiently. This decision minimizes the risk of overflow errors and arithmetic inconsistencies in the ledger codebase. 100 billion supply capacity allows the system to accurately process any transaction amount while maintaining performance and compatibility with traditional software frameworks.
Ease of use and simple design
Digression From technical grounds, The choice of 100 billion is also Considering human ease of use. As Mr. Schwartz pointed out, the third reason why the circulating supply of XRP is 100 billion units is that this number is easy for humans to remember.
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Ripple’s architects wanted a holistic supply that was easy to communicate, recognize, and remember. Round, easy-to-remember numbers like 100 billion convey clarity to users and traders.
The maximum supply of XRP is 100 billion tokens, Not all tokens are currently in circulation. As of this writing, XRP has a circulating supply of 60.1 billion tokens.
At Ledger’s launch, a total supply of 100 billion XRP was pre-mined and locked. Of this amount, approximately 55 billion XRP conclude an escrow contract It is controlled by Ripple and controls the number of tokens introduced into the market over time.
As of this writing, approximately 35 billion XRP tokens are currently locked in escrow, waiting to be released into circulation. Every month, up to 1 billion XRP is released and the unused portion (approximately 70%-80%) is usually returned to escrow. As part of the schedule, Ripple plans to unlock an additional 1 billion XRP from escrow on November 1st. At the time of writing, XRP is trading at $2.51, up 0.9% over the past 24 hours.
Featured image from Freepik, chart from Tradingview.com