In a recent interview with renowned XRP influencer Eri, Ripple’s Lead Product Manager, Jasmine Cooper, shed light on the forthcoming Automated Market Maker (AMM) on the XRP Ledger (XRPL) and its potential to Bolster XRP’s tokenomics and enhance its utility.
Cooper’s insights come at a time when the XRP community is abuzz with excitement about the AMM’s potential and the discussions surrounding its ability to reshape XRP’s tokenomics. Some have even speculated that the AMM could turn XRP into a stablecoin-like asset.
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Tokenomics: Immutable and Stablecoin Not Needed
Addressing these concerns head-on, Cooper emphasized that the fundamentals of XRP’s tokenomics remain unchanged, making it highly improbable for the AMM to instigate any fundamental alterations. She further asserted that XRP’s established role as a utility token for gas and account reserves would remain intact and unaffected by the AMM.
Cooper’s stance aligns with recent statements from prominent crypto author Panos Mekras, who adamantly maintained that XRP’s tokenomics are immutable and that the AMM would not transform it into a stablecoin.
Instead, Mekras argued that the AMM would thrive on volatility, thus reinforcing XRP’s utility as a gas and reserve asset.
AMM Expected to Generate Heightened XRP Demand
While dismissing any notions of tokenomic changes, Cooper accentuated that the AMM is poised to significantly impact XRP by generating increased demand and bolstering its utility. She elucidated that as the AMM gains traction and adoption surges, the demand for XRP would naturally rise, ultimately driving its usage and value.
This surge in demand aligns perfectly with the AMM’s core functionality, which entails liquidity pools composed of asset pairs. As users engage in trades within these pools, they generate fees that are subsequently distributed to liquidity providers, effectively incentivizing the utilization of XRP.
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Community Apprehensions Surrounding AMM Implementation
The AMM, introduced through the XLS-30D Amendment, is currently integrated into the XRPL version rippled v1.12.0. However, achieving validator consensus for the amendment has proven to be a hurdle, causing concerns among community members.
Voting for the amendment is still underway, with the current consensus at 40%. To date, 14 validators, including Ripple and Bithomp, have voted in favor of the amendment, while 21 validators remain opposed.
Jasmine Cooper, Ripple’s Lead Product Manager, has highlighted the potential of the forthcoming AMM to revolutionize XRP’s utility and fuel heightened demand for the asset. Despite addressing concerns related to tokenomic changes, the implementation of the AMM remains contingent on validator consensus, with voting still ongoing.
The potential impact of the AMM on XRP and the broader XRPL ecosystem continues to captivate the community, leading to passionate discussions. As the development of the AMM progresses, its influence on XRP’s utility and market performance will be vigilantly monitored.
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