Recently Stellar has 50% of its total XML token inventory destroyed. The company has also stopped its usual giveaway campaigns because of the effects that continue to decrease. However, not everyone on the social media platform Twitter agreed. Just like Jed McCaleb.
Co-founder of Stellar and Ripple Labs
Jed McCaleb is the co-founder of Stellar and also the co-founder of Ripple Labs. He has responded to Ripple’s Chief Technical Officer (CTO), David Schwartz. Schwartz is said to have teased one of his followers with the action of SDF.
When the Swell conference ended, the CTO had posted a video in which he said they had a lot of fun making a video after the conference ended.
A follower of their Twitter channel did not fully agree with this. The user also did not like the current value of the XRP token.
“No pleasure here for 25 cents”. This tweeted the user. With the 25 cents, the user was talking about the current XRP price.
This tweet caused a whole discussion. The Ripple CTO responded to this tweet by tweeting: “Too bad XRP is decentralized or someone could just burn half the supply and raise the price to 29 cents.”
According to Jed McCaleb, this is incorrect. He believes that Ripple Labs can destroy approximately 50% of the XRP stock. This can also be seen in the tweet below.
Wtf are you talking about. Ripple labs can burn half the XRP supply.
— Jed McCaleb (@JedMcCaleb) November 9, 2019
How can XRP tokens be destroyed?
Not everyone on the social media platform of Twitter just believes that XRP tokens can be destroyed. David Schwartz, however, responded with the following possibility, namely that XRP tokens can be sent to a new account whose public key hash has insufficient entropy to find a corresponding private key that anyone can find. This makes the XRP tokens on this account unusable and thus sort of destroyed. Another way to destroy the XRP tokens is to pay it as a fee for something. This fee can theoretically be infinitely high, such as 50% of the XRP token stock.
However, it remains to be seen whether Ripple Labs intends to just destroy so many XRP tokens. Many of these tokens are currently stuck in the Ripple escrow, which is used to fund various Ripple projects.