Ripple’s Chief Technology Officer, David Schwartz, recently spoke out against the concept of a Robinhood (RHD) token proposed by Neil Hartner, a senior staff software engineer at Ripple. The idea behind this token was to redistribute tokens from the top 10% holders to the bottom 90% at random intervals, utilizing the newly integrated Clawback (XLS-39) amendment on the XRP Ledger blockchain.
Ripple’s CTO take on Robinhood token
Neil Hartner, a senior staff software engineer at Ripple, put forward the notion of a Robinhood (RHD) token, suggesting a redistribution of tokens from the top 10% holders to the bottom 90% at random intervals. However, Schwartz expressed skepticism towards this idea, sarcastically remarking, “I love that idea.”
Yeah. And I guess if people for some reason did want to hold a lot of it, they'd just do it in several accounts. Too bad. It seemed kind of cool.
— David "JoelKatz" Schwartz (@JoelKatz) February 9, 2024
Another voice in the conversation, XRPL developer Wietse Wind, questioned the need for accumulating large amounts of such a token. Wind compared the Robin Hood token to the famous character’s principles. Suggesting that a token bearing its name should naturally be valuable to users, reducing the need for hoarding.
Schwartz agreed with Wind, saying that people might try to cheat the system by spreading their tokens across many different accounts to avoid having them taken back. He stressed that it’s important for tokens to be valuable on their own, without any tricks or cheating.
Validators on the XRP Ledger recently voted in favor of the XLS-39 amendment proposal, enabling clawbacks on tokens transferred within the network. Developers confirmed the activation of this feature two weeks after its passing.
XRPL Clawback Amendment
However, it’s essential to note that this clawback feature solely applies to tokens issued on the XRP Ledger, excluding XRP, the network’s native currency. The functionality holds significance for issued tokens like stablecoins and central bank digital currencies (CBDCs) for various reasons.
Stablecoin issuers such as Tether and Circle have frozen assets in the past due to bad actors, highlighting the need for clawback capabilities. CBDCs might need this feature to follow rules and get back money if there’s fraud. Regular banks can undo transactions, so this helps CBDCs too.
As of the latest real-time data, XRP is trading at $0.5217, experiencing a 1.29% increase over the past day. The market cap stands at $28.4 billion, marking a corresponding 1.29% increase. However, the 24-hour trading volume has decreased by 7.35%, now at $838 million. The volume-to-market cap ratio is 2.95%.
With a circulating supply of 54.44% of the total XRP tokens, which amounts to 54.44 billion XRP out of a total supply of nearly 100 billion, XRP maintains its position as the sixth largest cryptocurrency. The fully diluted market cap is estimated at $52.17 billion, based on a maximum supply of 100 billion XRP.
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