- XRP cannot be mined; its supply is fixed at 100 billion tokens and decreases over time.
- Each XRP transaction burns 0.00001 XRP, permanently removing tokens from circulation.
- The token’s deflationary model increases scarcity, potentially impacting its price as usage grows.
- Ripple designed XRP as a bridge asset for cross-border payments, with low fees and fast settlement times.
- Ripple CEO Brad Garlinghouse highlights growing momentum and real-world utility driving adoption.
XRP operates with a fixed supply of 100 billion tokens and cannot be mined. Unlike cryptocurrencies such as Bitcoin or Ethereum, XRP’s supply only decreases over time because tokens are permanently destroyed during transactions.
According to data from Ripple and academic research by Aigubov and Magomedtagirov (2017), every transaction on the XRP Ledger burns exactly 0.00001 XRP. These tokens are not collected or redistributed; they are removed from circulation, leading to a reduction in total supply.
Crypto researcher SMQK has shared sources explaining XRP’s structure, emphasizing that it cannot be mined and its quantity continually shrinks. This deflationary design creates scarcity, which may raise XRP’s value as the network’s usage expands.
The scarcity effect directly connects to XRP’s utility as a bridge asset for cross-border payments. Ripple built XRP to enable fast, low-cost transactions between various financial systems, including fiat currencies and cryptocurrencies. The network processes payments within seconds at costs of a fraction of a cent.
Ripple CEO Brad Garlinghouse stated, “Excited for the year ahead! Momentum and increased focus on real-world utility continue to build.”
As adoption grows through institutional partnerships and decentralized finance integration, XRP transactions contribute to the token’s burn rate. The permanent removal of tokens establishes predictable supply dynamics that differ significantly from cryptocurrencies that rely on mining.
Overall, XRP’s deflationary tokenomics and embedded burn mechanism create a unique supply model. This model potentially supports increased scarcity and price growth as network usage accelerates across payment corridors.
Source: CoinDesk
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Bitcoin Surges Above $111K, Ethereum and XRP Rally as Crypto Gains
- 88% of Airdropped Crypto Tokens Lose Value Within 3 Months
- Trump Maintains ‘Massive’ Tariffs Until India, a BRICS Member, Stops Buying Russian Oil
- Crypto Rally Strengthens as Bitcoin Tops $111K Amid Global Gains
- BNY CEO Highlights Blockchain as Growth and Efficiency Tool
