Ripple executives are exploring the potential of introducing native staking on the XRP Ledger (XRPL), a move they believe could enhance the token’s utility and strengthen network security. J. Ayo Akinyele, head of engineering at RippleX, outlined initial concepts for how this could be implemented, focusing on the need for appropriate reward distribution and the potential restructuring of the protocol to accommodate these changes.
Staking, in the cryptocurrency context, involves locking up assets to help secure the network while earning protocol-defined rewards. Akinyele noted that the XRPL typically burns transaction fees to maintain a deflationary supply. Therefore, introducing staking would require careful consideration of how rewards are generated and distributed to ensure fairness among stakeholders.
The current design of the XRP Ledger is heavily oriented towards efficient global value transfer and liquidity, particularly for cross-border payments. Akinyele suggested that adding a staking mechanism could help XRP maintain its competitive edge, especially in light of its adoption by global digital asset treasuries and exchange-traded funds. However, he warned that such a development could pose challenges to the ledger’s foundational principles, specifically the Proof of Association model, which emphasizes trust and stability over purely financial incentives.
In a follow-up discussion, Ripple’s Chief Technology Officer, David Schwartz, proposed two high-level models for integrating staking into the XRPL. The first model envisions a dual-layer validator system. In this setup, an inner layer of approximately 16 validators, chosen by an outer layer based on stake, would be responsible for advancing the ledger using staking mechanisms. The outer layer would include existing validators without a staking function, overseeing governance and policing the inner layer against malpractices like double signing.
The second model suggested retaining the existing consensus structure while incorporating fees for zero-knowledge proofs, a cryptographic method that allows one party to prove the truth of a statement without revealing any additional information. Schwartz acknowledged that while these concepts are intriguing and technically feasible, their implementation is complicated and fraught with risks, making them impractical in the near term.
As discussions evolve, XRP’s market performance remains steady, with a minor increase of 0.2% over the past 24 hours, trading at approximately $2.13, as reported by CoinGecko. Ripple continues to navigate these complexities, weighing the potential benefits of staking against the implications for the XRPL’s core design and operational integrity.
