Ripple has modified its usual XRP escrow release schedule for March 2024. The company releases 1 billion XRP at the beginning of every month and locks back about 800 million shortly after. However, data from blockchain whale tracker Whale Alert (@whale_alert) indicates a deviation from the standard practice.
March Escrow Adjustments
Although Ripple returned 800 million XRP to escrow on March 1, the company only unlocked 500 million tokens initially, raising some questions within the community. The initial 500 million XRP release occurred at midnight UTC, and the company locked 800 million XRP in three transactions later that day.
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The first of these was a 100 million XRP transaction, valued at $59.48 million. Following this, the company locked 200 million tokens valued at $118.94 million, and finally, 500 million tokens valued at $297.65 million at the time of the transaction.
Reason for the Discrepancy and Potential Future Release
Whale Alert did not report Ripple’s 500 million XRP unlock, but Escrow execution #21, which unlocked these tokens, occurred at Midnight on March 1. Bithomp, the blockchain explorer, also shows that Ripple attempted to release another 500 million tokens on the same day.
However, this transaction, Escrow execution #22, failed with a “no target” error, indicating that “The transaction referenced an Escrow or PayChannel ledger object that doesn’t exist, either because it never existed or it has already been deleted.”
It remains unclear whether Ripple will attempt to unlock the remaining 500 million XRP to fulfill the standard 1 billion XRP monthly allotment. Ripple also unlocked 400 million XRP in late February, raising questions in the community about an XRP selloff and the chances of Ripple unlocking another 500 million tokens.
However, Ripple experienced a similar problem in early February and could only unlock 600 million XRP. The 400 million XRP unlock on February 25 was to make up the 1 billion amount. This behavior suggests that Ripple will unlock 500 million tokens sometime in March to make up the 1 billion XRP amount and adhere to the planned monthly release.
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Read Also: Crypto Whales Moved 100 Million XRP to Binance and Bitstamp
The Importance of the Escrow Releases
Ripple utilizes escrow accounts to manage the controlled release of XRP tokens. This process aims to ensure market stability and prevent excessive volatility by regulating the flow of the crypto into circulation. The programmed schedule facilitates a predictable disbursement of the digital asset, fostering trust and transparency within the cryptocurrency ecosystem.
The adjustment to the schedule was unintentional. Ripple is expected to continue the releases as planned, with the company still holding over 40 billion XRP in escrow.
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