XRP Circulating Supply Debate: Ripple CTO Draws Bitcoin Parallel
XRP Circulating Supply Discrepancies
A recent discussion about XRP's circulating supply sparked debate after discrepancies were noted between CoinMarketCap and XRPScan. CoinMarketCap reports 57.64 billion XRP in circulation, while XRPScan shows 62.23 billion XRP. Ripple CTO David Schwartz addressed the issue, explaining that the definition of "circulating supply" can vary.
Bitcoin Analogy and Satoshi's Holdings
Schwartz drew parallels with Bitcoin, questioning whether Satoshi Nakamoto's estimated 1 million BTC, which have remained inactive, are considered part of the circulating supply. While technically on the blockchain, many believe these coins are effectively out of circulation due to their inactivity. Bitcoin's total supply is 19.81 million BTC, with a maximum cap of 21 million BTC.
Ripple's XRP Holdings
Ripple's XRP is divided into two categories: XRP held in active wallets and XRP locked in escrow accounts. The escrowed XRP is released monthly over 42 months, with unused portions returned to escrow. This mechanism ensures a controlled release of XRP into circulation.
The debate underscores the challenges of defining and measuring circulating supply in the crypto ecosystem.
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