San Francisco-based blockchain company Ripple has once again unlocked 1 billion XRP tokens, according to data from Whale Alert, a crypto wallet tracking platform. This is part of a strategy Ripple started in 2017, where the company placed 55 billion XRP tokens into several escrow wallets, releasing 1 billion tokens monthly. This move was intended to make the supply of XRP more predictable, although the number of tokens that actually enter circulation is usually less than 1 billion.

Was the Escrow Strategy a Good Idea?

The escrow strategy was designed to help Ripple manage its vast holdings of XRP in a controlled manner. Ripple CTO David Schwartz has shared that the initial goal was to reduce Ripple’s XRP holdings quickly, but the company decided on a more measured approach by using the escrow system. However, Schwartz has expressed uncertainty about whether this strategy was the best choice, as he was initially against the idea and remains unsure of its long-term benefits.

Can the Escrow Tokens Be Burned?

Ripple CEO Brad Garlinghouse has suggested that burning XRP tokens from the escrow is not off the table. Burning tokens would reduce the total supply of XRP, potentially increasing its value. Schwartz has also mentioned that a similar effect could be achieved by “blackholing” the account the escrow is linked to, ensuring that no XRP from the escrow would ever enter circulation. This idea is still being considered as Ripple evaluates the best ways to manage its XRP supply.