Created by XRPL Labs, a development team that works on projects for XRPL, Xahau Network is a sidechain offering the allure of smart contracts via the innovative Hooks protocol. However, accessing its wide range of possibilities comes with a cost. Users must burn their XRP to mint the equivalent in XAH tokens, effectively fueling the fire of the burn mechanism.

While initial adoption of this XAH-for-XRP swap remained low, a recent Xumm wallet update, which rebranded it as the Xaman wallet, has caused a surge in the community. This update grants users the sleek ability to seamlessly navigate between the XRPL and Xahau, with their existing r-address.

The impact of this convenience provided by Xaman is evident in the rising number of XRP burns shown on XRPScan. Since mid-December, the data paint a clear picture of an accelerating trend.

Between December 18 and 20, daily XRP burns rose from below 3,000 XRP to over 5,000 XRP. This ascent resumed on December 28 and carried on to January 2, where burns crossed 10,000 XRP.

While regular XRP transfers contribute a steady stream to the token burns, the recent uptick undoubtedly carries the fingerprints of Xahau’s growing adoption.

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What’s Next for XRP?

The question on the minds of many now is where these burns will lead. Can the increased token burn rate reshape the XRP price landscape, and push the beloved token up?

Proponents of this theory point to the deflationary potential of the burn mechanism, arguing that each burned token gets removed from circulation, theoretically tightening supply and potentially pushing the price upwards. However, cautious voices temper this enthusiasm, citing the relatively low number of XRP currently being burned.

Over its lifetime, the burn mechanism has only destroyed 11.8 million XRP, translating to a mere $6.8 million. This amount is nothing compared to XRP’s total supply.

Ripple Chief Technology Officer (CTO) David Schwartz recently shared his belief that the mod of burning XRP to mint XAH can increase demand for XRP. If XRPL can improve token burns, the burns, and the increased demand could help push XRP’s price up.

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The post XRP Burns Increases as More Users Trade XRP for XAH appeared first on Times Tabloid.

Xahau, which operates as a sidechain on the XRP Ledger (XRPL) to facilitate the execution of smart contracts, has recently made its debut alongside its proprietary digital currency, XAH.

Nonetheless, some members of the XRP community have expressed concerns regarding the necessity of burning their XRP tokens in exchange for XAH through a procedure known as Burn2Mint.

It’s essential to emphasize that this process is irreversible and involves the permanent forfeiture of XRP tokens.

Read Also: Ex-Ripple CTO Declines Help to Unlock His $241 Million Bitcoin Wallet, Has Two Guesses Left

Ripple CTO Explains Why He Supports the Burn2Mint Concept

In the face of these concerns, Schwartz has openly given his support to Xahau’s Burn2Mint strategy.

In a post on X, he explained the advantages of this approach, emphasizing that it is not the primary method for obtaining XAH. Furthermore, he outlined that the main channels for obtaining XAH will encompass airdrops, minting rewards, initial grants, and centralized and decentralized exchange.

There are a lot of advantages to their approach though.

First, it's important to understand that the idea is not that burn2mint will be the primary way people get XAH. People will primarily get XAH from the initial grants, from airdrops, from subsequent reward mints, from…

— David "JoelKatz" Schwartz (@JoelKatz) November 1, 2023

Burn2Mint serves as a backup solution to enable XRP holders to access XAH in a decentralized and secure manner, particularly in the early stages. He suggested that Burn2Mint addresses potential challenges that could impede Xahau’s launch, such as a scarcity of XAH or liquidity problems.

Moreover, Schwartz clarified the rationale behind Xahau’s choice of Burn2Mint over a two-way bridge solution. Implementing a two-way bridge would require a custodial entity to manage bridged assets on the XRPL, which would introduce technical and legal complexities.

Schwartz also addressed XRP holders who might be reluctant to use their tokens to obtain XAH. He mentioned that if Burn2Mint goes unused, it won’t affect them. However, if used, it will reduce the available supply of XRP and generate a demand for it, which is advantageous for these holders.

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Read Also: Ripple CTO David Schwartz Reveals Compelling Facts About Bitcoin (BTC)

Xahau’s Impact on XRP Supply

Xahau was introduced to improve XRPL’s capabilities and scalability. On the other hand, amid the discussions about Burn2Mint, Krippenreiter (@krippenreiter), a prominent community member, predicted that only a limited number of market participants would likely employ this mechanism.

He suggested that users might burn less than 1% of XRP’s total supply to acquire XAH, his rationale being that everyday users and investors lack a compelling reason to use Burn2Mint to exchange XRP for XAH.

Instead, they are more likely to opt for trading on centralized or decentralized exchanges in the future rather than engaging in coin burning. Now that Bitrue has announced the listing of XAH, the community is waiting to see what comes next.

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The post Ripple CTO Highlights How Xahau’s “Burn XRP to Mint XAH” Model Could Drive XRP Demand appeared first on Times Tabloid.

ATTENTION ALL #XRP FANS

@XahauNetwork $XAH Mint Event is NOW OPEN on #Bitrue

Don’t miss the chance to be the first $XAH holder

Lock your $XRP and mint now: https://t.co/9cBbD1OAw9 pic.twitter.com/XPOVS07SVz

— Bitrue (@BitrueOfficial) October 30, 2023

Read Also: XRPL Labs Creator Addresses Concerns About Xahau Replacing XRP Ledger

Locking XRP Tokens to Mint XAH

In this groundbreaking campaign, XRP holders have the opportunity to mint XAH tokens by locking their XRP tokens on the Bitrue minting portal for seven days.

Once the event concludes, the locked XRP tokens will be processed, and participants will receive the corresponding amount of XAH tokens. The minimum requirement for locking XRP tokens is set at 20, providing an accessible entry point for interested individuals.

Prominent pro-XRP legal counsel, Bill Morgan, has expressed his excitement about participating in the XRP-XAH minting campaign on Bitrue.

While sharing his perspective, Morgan revealed his general inclination to hold XRP but mentioned that he is giving the XAH minting process a try with a small portion of his XRP holdings.

Bitrue has opened its XRP to XAH (Xahau) mint. I gave it a go with a small amount of XRP but I generally want to hold my XRP. pic.twitter.com/Jdaq5CTzz6

— bill morgan (@Belisarius2020) October 30, 2023

Xahau Ledger’s APY System Enhances User Experience

In addition to the XAH minting campaign, Bitrue is emphasizing the Xahau Ledger’s monthly balance adjustment system, introducing an attractive proposition for active users. This system reintroduces a fraction of the XAH tokens previously burned as transaction costs, resulting in a potential balance increase for users.

Through the Xahau Ledger’s balance adjustment system, active users can claim a balance increase equal to approximately 0.34% of their average monthly balance. This equates to an annual percentage yield (APY) of 4%. The APY system offers a passive income stream for users, ensuring their engagement is not only rewarding but also financially beneficial.

Bitrue’s launch of the new XRP-related features, including the XAH minting campaign and the Xahau Ledger’s APY system, represents a significant development and reinforces its commitment to the XRP community. These features provide XRP enthusiasts with unique opportunities to engage with the trading platform and maximize the value of their XRP holdings.

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Read Also: Experts Assess How XRP Could Benefit from Xahau and Its Token XRP+

The XAH minting campaign is open to all Bitrue users, with a minimum requirement of locking 20 XRP tokens. The locking process lasts for a duration of seven days, allowing participants to securely engage in the minting of XAH tokens.

At the conclusion of the event, the distribution of XAH tokens to participants will take place, providing them with a tangible outcome for their involvement.

Accessing the Xahau Ledger’s APY Feature

Users who participate in the XAH minting campaign receive automatic access to the Xahau Ledger’s APY feature. This allows them to enjoy the benefits of the monthly balance adjustment system, with a balance increase equivalent to approximately 0.34% of their average monthly balance.

The Xahau Ledger, developed by the Bitrue team, operates on a fast, scalable, and secure blockchain network and utilizes the XAH utility token for transactions, staking rewards, and governance purposes.

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Wind reassured community members that his team’s commitment to developing the XRPL remains unwavering, regardless of Xahau Ledger’s success.

The @XRPLLabs team has been building Hooks and what now becomes Xahau … for 2.5 years now.

Did we seem less active on XRPL mainnet the past 2.5 years?

Nope. And our contributions and commitment to the XRPL ledger won't end now.

One ecosystem. One audience. More features. https://t.co/hS12G2Yznx

— WietseWind (+ Xumm @ XRPL Labs) (@WietseWind) October 29, 2023

Read Also: 600 Million Xahau XRP Allocated For Initial Distribution. Here’s What You Need to Know

The debate within the XRP community arose due to the predefined monetization plan for Xahau’s 8 Governance Game validator seats at launch. Critics expressed worries that once Xahau is fully operational and developers start receiving the initial allocation of 12 million XAH tokens as early validators, they might abandon the XRPL.

In response to these concerns, Wind firmly dismissed any notions of abandonment, emphasizing his team’s dedication to the XRPL.

Wind clarified that Xahau was specifically created as a platform for Hooks, a smart contract proposal for the XRPL before it goes live on the mainnet. Even if Hooks isn’t deployed on the XRPL mainnet, Wind assured the community that his team would continue to support and enhance both the XRPL and Xahau.

Wind’s comments resonated with the XRP community, providing reassurance regarding the XRPL ecosystem’s future. The team’s steadfast commitment to the development of both the XRPL and Xahau reflects their long-term vision and dedication to innovation.

Xahau: Advancing XRPL’s Capabilities

Xahau, a sidechain currently in development, aims to extend the functionalities of the XRPL by offering a platform for smart contracts and other advanced applications. The Fuel behind Xahau’s operations is its native token, XAH, which facilitates payments for gas fees and other transaction costs.

As a work-in-progress project, Xahau possesses the potential to significantly expand the capabilities of the XRPL. The introduction of Xahau opens doors for the development of decentralized exchanges, decentralized finance (DeFi) applications, and non-fungible token (NFT) marketplaces.

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Read Also: Experts Assess How XRP Could Benefit from Xahau and Its Token XRP+

Positive Outlook for XRPL’s Ecosystem

Wind’s recent remarks hold considerable weight, considering the ongoing discussions among the XRP community regarding Xahau’s impact on the growth of XRPL. His assurance of continued support and development for both ecosystems brings relief to community members concerned about potential divergence.

Xahau’s success could ultimately prove beneficial for the XRPL ecosystem as it introduces fresh innovations and attracts new users. Although the true potential of Xahau remains to be seen, the fact that it is being developed by a team deeply committed to the XRPL offers hope for a promising future.

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