Crypto Community on Twitter Engages in Discussions About Ripple’s XRP Escrow Future
Crypto Twitter Engages in Speculation Over the Future of Ripple’s XRP Escrow
The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has sparked discussions on Twitter regarding the possibility of “burning” Ripple’s XRP escrow account. The account currently holds over 42 billion XRP, and some users wonder if its destruction could strengthen Ripple’s case and expedite a resolution to the lawsuit.
The conversation was initiated by the SEC’s filing of a Supplemental Brief on Remedies in its lawsuit against LBRY, a crypto startup. The brief called for restrictions on LBRY’s unregistered offerings until the destruction of its existing holdings of the LBC token, potentially through token burning—a practice known in the crypto community.
Ripple’s Chief Technology Officer, David Schwartz, responded to the developments in LBRY’s case. Inquiring users asked if Ripple would have to destroy its XRP escrow account to settle with the SEC. However, others on Twitter pointed out that burning the XRP escrow would not be a straightforward process.
While some Twitter users expressed confidence that Ripple could influence network validators to initiate a token burn, effectively eliminating the XRP escrow, the consensus was that the process would be complex. Ripple would need to ensure validators comply with the judge’s ruling or redirect the monthly release of 1 billion XRP to an address without a key. This would render the account inoperable, effectively “burning” the tokens by making them inaccessible to anyone.