Ripple Lab’s XRP token holdings, for the first time in the company’s history, dropped below 50% of the total circulating supply. In the past, the company faced criticism over its large ownership of XRP as it has Ripple Labs centralized control over its XRP Ledger (XRPL).
Ripple ignited that criticism by outlining the token in its Q3 report on October 27. However, it also said that its XRP holdings continue to decline. The token has fallen below 50 billion tokens or 50% of the total supply. Ripple Labs stated that critics have pointed to the company’s XRP ownership as an indicator that the XRP Ledger is controlled by Ripple, which is not true. It highlighted that the XRPL uses Federated Byzantine Consensus to validate transactions, add new features, and secure the network. This means that each validator node gets one vote regardless of how much XRP they own.
Brad Garlinghouse, Ripple CEO, tweeted that below 50% is a huge milestone for the firm. He shared that Ripple has focused on using XRP and the XRPL, for 10 years, within their products for its speed, security, and scalability for the movement of value. Garlinghouse believes that as more customers use the token in their payment flows, it’s clear there is a utility.
Ripple revealed that it currently operates four out of the 130+ validator nodes on the XRPL. In its latest quarterly report, Ripple’s total net sale of XRP was down to $310.68 million compared to $408.9 million in Q2. The report states that Ripple continued to sell the token only in connection with On-Demand Liquidity (ODL) transactions, and ODL volumes ramped up as Ripple’s ODL business expanded globally.