According to Ripple’s CTO, the community could force the blockchain company to burn all of its XRP holdings
David Schwartz, the company’s CTO, stated that the XRP community has the power to vote to burn 48 billion XRP. Schwartz, who has never shied away from controversial comments, confirmed that the auditors had more say than the company in this decision.
If validators decided to vote in favor of burning the 48 billion XRP tokens, the company would hypothetically have no choice but to comply, even if it did not agree to the decision.
The CTO replied to a Twitter user who asked, “If nodes, validators, and the community at large get together and we all agree that it is better for the community to burn the 50 billion XRP ripple into escrow accounts, would it be possible? “
In a tweet, Schwartz admitted that the community could decide the fate of the XRP coin since the blockchain is democratic.
“There would be nothing Ripple could do to prevent this from happening. Public blockchains are very democratic. If the majority wants a rule change, there is nothing the minority can do to stop them, ”wrote Schwartz.
Ripple currently has custody of half of the total XRP offering. The company has been heavily criticized in the past by its community for its decision to sell tokens. Last year, the company was accused of years of price manipulation, despite denying these claims.
Late last year it was reported that the company could unilaterally agree to burn the oversupply. It did so after Stellar reduced its total offering from 105 billion XLM tokens to 50 billion tokens. Schwartz dug into the company and mocked his decision.
“Too bad XRP is decentralized or someone could just burn half the supply and raise the price to 29 cents,” he wrote.
Stellar’s Jed McCaleb responded by writing, “Wtf are you talking about? Ripple Labs can burn half of the XRP supply.”
The activation of an XRP ledger change requires an approval rate of 80% from the validators. This must be kept above the threshold for two weeks for activation to be successful. In the past, validators activated a change without any company support. It did when the reviewers in the XRP ledger voted to accept the change change.