A change in operational pattern of Ripple regarding the monthly unlocking of 1 billion XRP tokens has been spotted this October.
This could mean that the crypto solutions company, which locked a total of 55 billion XRP into a series of cryptographically-secured escrow accounts in 2017, has ended the scheduled release of the massive volume of XRP tokens from the escrow.
Ripple’s Monthly 1 Billion XRP Unlocking Explained
In September 2012, the trio of developers David Schwartz, Jed McCaleb, and Arthur Ritto, the co-founders of the XRP Ledger (XRPL) and its native token, XRP (initially named “ripples”) gifted Ripple Labs Inc (or Ripple) 80% of XRP‘s total supply which equated 80 billion units of XRP following the launch of the permissionless, fast and decentralized XRP Ledger. Meanwhile, the total supply of XRP is 100 billion.
Considering that Ripple upon its founding in 2012 by Christian Larsen together with the three XRP Ledger creators, set out to offer use cases for the XRP token, the XRPL founders gave the crypto solutions company 80 billion XRP while keeping 20 billion XRP tokens for themselves.
It is worth noting that Ripple (originally named OpenCoin) is not the creator of the XRP token as misconstrued by some. Ripple is a San Francisco-based cross-border payment service and crypto/ blockchain solutions company. As disclosed by David Schwartz, in December 2017, Ripple later locked 55 billion XRP (55% of the total supply of XRP) in escrow accounts to provide additional predictability to the supply of XRP.
Since 2018, these escrow accounts unlock a total of one billion XRP monthly and this was designed to occur for 55 months. That is, it became a common practice that on every first day of the month, Ripple usually unlocks 1 billion XRP from escrow. After a few hours, the leader in blockchain enterprise usually locks back 800 million units of the digital token leaving 200 million XRP in the market.
No XRP Unlocked by Ripple in October
However, this did not happen on October 1 and is yet to be executed up until the time of this post. This could mean that Ripple has completed the release of the 55 billion XRP into circulation but the company is yet to issue a statement on this matter.
But according to an earlier report, Ripple disclosed that as of September 4, 2022, the total XRP held by the company is 5,563,280,575 and the total XRP distributed is 49,826,021,773, while the total XRP placed in escrow is 44,600,000,013. The report added that these totals are inclusive of pending business development agreements.