Ripple CTO: Ripple Could Have Sold As Much XRP Before the Escrow

@media only screen and (min-width: 0px) and (min-height: 0px) { div[id^=“wrapper-sevio-6a57f7be-8f6e-4deb-ae2c-5477f86653a5”]{width:320px;height:100px;} } @media only screen and (min-width: 728px) and (min-height: 0px) { div[id^=“wrapper-sevio-6a57f7be-8f6e-4deb-ae2c-5477f86653a5”]{width:728px;height:90px;} }

The outgoingRipple’s Chief Technology Officer, David Schwartz, has provided clarity to a long-running debate about XRP’s supply controls. The comment came in a public exchange that initially focused on taxes, wealth, and corporate behavior.

Schwartz’s post brought the discussion back to Ripple and the mechanics of XRP distribution. Responding to an accusation that he implemented Ripple’s escrow system to pay for his career, Schwartz chose to explain how things worked before the escrow system existed.

Schwartz Explains Ripple’s Pre-Escrow Position

In his post, Schwartz stated, “Before the escrow, Ripple could have sold as much XRP as it wanted every month.” He followed that with a personal clarification. “I opposed the decision to implement the escrow precisely because I didn’t see enough upside to justify giving up that flexibility.”

His comments confirm two key points. First, Ripple did not face a technical limit on XRP sales before escrow. Second, the escrow was not universally supported inside the company. Schwartz made clear that he valued flexibility and questioned whether locking up supply created sufficient benefits at the time.

He did not claim the escrow was harmful or forced. He simply explained his position and why he disagreed with the decision when it was proposed, debunking claims that he implemented it for selfish reasons.

How the XRP Escrow Works

Ripple introduced the XRP escrow in 2017. The company locked 55 billion XRP into time-based smart contracts on the XRP Ledger. Each month, the company unlocks 1 billion tokens. The unused portion, approximately 600 million and 800 million tokens, is returned to escrow.

This system created predictability. Markets could see the maximum possible supply that might enter circulation each month. Ripple no longer had the discretion to release unlimited XRP based on internal decisions. Schwartz’s comment confirms that this predictability came at a cost. Ripple voluntarily gave up the control it previously held.

Why the Escrow Supports XRP Today

For XRP holders, the escrow structure provides transparency. While the escrow has its critics, it offers some advantages. It limits uncertainty around supply shocks. Experts also believe it protects XRP’s price and separates Ripple’s operational needs from short-term market conditions.

Although Schwartz initially opposed the move, the system addressed long-standing concerns. Investors can now evaluate XRP with clear data on potential monthly releases. That clarity supports confidence and eliminates speculation about hidden sell-offs.

Disclaimer*: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.*