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The XRP Ledger (XRPL) has reached a significant milestone in its development, marking its evolution with features like a daily burn rate. Although it is not a fully deflationary protocol, XRP burns a portion of its supply daily. Over time, this has contributed to a meaningful reduction in the total XRP supply.
According to data from XRPScan, the XRPL has burned 13,014,042.56 XRP since its launch. While this may be a modest amount compared to XRP’s circulating supply, it underscores the ongoing impact of the burn mechanism on the protocol. This cumulative burn indicates XRPL’s readiness for future developments and a shift toward a deflationary approach.
Focus on Transactional Efficiency Over DeFi Integration
As a distributed ledger technology, XRPL supports smart contracts. However, it has not integrated into the Decentralized Finance (DeFi) ecosystem as deeply as platforms like Ethereum or Solana. The XRP Ledger is specifically designed for efficiency in commercial transactions and micro-payments. For each transaction, a small amount of XRP is directed to a burn wallet.
Related article: XRP Ledger Surges with Unprecedented Token Issuance
The recent milestone of over 13 million XRP burned reflects XRPL’s utility in handling a high volume of transactions. XRPScan data reveals that the XRPL has processed 203,630 payments across 92,036,034 closed ledgers, showing a steady rate of activity on the network.
Community Eyes Ripple Labs’ RLUSD Stablecoin
Despite being an open ecosystem, the XRPL community expects Ripple Labs’ RLUSD stablecoin to become a significant asset. Ripple aims to challenge the dominance of Tether’s USDT and Circle’s USDC in the stablecoin market with RLUSD. To achieve this, Ripple Labs has actively tested the RLUSD stablecoin on both the XRP Ledger and Ethereum.
Related article: XRP Ledger Advances with New Decentralized Identifier (DID) Integration
The testing includes minting, burning, and transfers, which are essential processes for a stablecoin’s functionality. The XRPL’s infrastructure supports these features, potentially enabling RLUSD to compete with established stablecoins effectively. The XRPL’s burn milestone signifies ongoing progress and the potential for further innovations.
With its transaction efficiency and ongoing stablecoin initiatives, the XRP Ledger is positioned to play a key role in the blockchain industry’s future developments.
The post XRP Ledger Burn Mechanism Surpasses 13 Million XRP: Key Insights appeared first on FXcrypto News.
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