The XRP community is engaged in a spirited debate over a new feature proposed for the XRP Ledger (XRPL). In response to the community’s concerns, David Schwartz, the Chief Technology Officer (CTO) at Ripple, took to X to shed light on the proposed XRPL Clawback feature.
Clawback, the new feature added to the XRPL, is part of the recently released rippled 1.12.0 version, awaiting validation from the XRPL validators. At its core, the XLS-39 Clawback feature enhances the token asset control capabilities of the XRP Ledger. It offers developers a tool to bolster security for their issued assets.
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Clawback’s primary function is to grant issuers the ability to “claw back” tokens under specific circumstances. These circumstances include fraudulent activities or when a user cannot access their account.
For Clawback to work, the token issuer has to activate the “Allow Trust Line Clawback” setting. Issuers that have existing tokens cannot enable Clawback and only tokens issued from an account can be clawed back by that account.
Despite its potential benefits, Clawback has ignited concerns among community members on X, with some expressing concerns about its implications for users. They worry that this feature could inadvertently favor the issuer over the user.
David Schwartz Addresses the Potential Concern
David Schwartz offers a counter perspective, emphasizing two key reasons why this upcoming feature could be advantageous for users. Firstly, Clawback is less intrusive compared to freezing assets. Unlike freezing, which can lead to significant disruptions for users, Clawback targets only the disputed amount, allowing the rest of the user’s assets to remain unaffected.
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Secondly, Schwartz highlights that Clawback empowers users by enabling them to negotiate the terms directly with the issuer. This feature can work in favor of users, as anything that benefits the issuer could encourage them to engage in more business with the user, ultimately increasing the user’s bargaining power.
Schwartz also sheds light on the motivation behind the Clawback feature. One crucial aspect is the XRPL’s need to reflect an issuer’s legal obligations. This feature aligns the XRPL with industry standards and positions it as a competitive platform for redeemable stablecoins.
While the Clawback feature has generated valid concerns, Schwartz presents compelling reasons why this feature could ultimately prove beneficial to users. The community is waiting to see if this new feature will be adopted by the XRPL validators. Schwartz also recently discussed XRP’s broader role on XRPL as more than a gas token.
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