Ripple will unlock 1 billion XRP on January 1st
IMPORTANT POINTS:
- On January 1, Ripple will unlock 1 billion XRP, which will affect the supply and price of the token.
- The unlock represents a significant percentage of the supply in circulation and controlled by Ripple.
- Ripple has re-locked previously issued tokens, extending the deadline for XRP to be fully circulated.
On the first day of every month, Ripple releases 1 billion XRP tokens from the XRP Ledger escrow system. On January 1 (Monday), the company will unlock $620 million worth of tokens in three transactions of 100 million, 400 million and 500 million XRP.
Interestingly, what the January 2024 unlock represents 1.84% of the current supply of 53.56 billion XRP tokens in circulation and 2.17% of the remaining 45.87 billion XRP tokens are controlled by Ripple.. The latter are still blocked on deposits, which will be released monthly until May 2027.
The three escrows will be completed in the last minutes of 2023 and will belong to two known crypto wallet addresses owned by Ripple. In particular, “Ripple (22)” will unlock 500 million XRP previously locked in November 2019.
Except, “Ripple (23)” will unlock 100 million and 400 million tokens locked in December and November 2019, respectively. These two addresses still hold 2 billion XRP tokens for monthly escrow, which will be released over the next two months until March 1, 2024.
Ripple shares with 1 billion XRP in December
1 billion XRP tokens were unlocked as expected on December 1st. Ripple immediately re-locked 800 million (80%) of the total deposits due to expire in April and May 2027.
It is noteworthy that despite the fact that he only has 200 million XRP, the company spent 310 million tokens ($192 million) from its main address “Ripple 1”., December. Sales were carried out weekly in four transactions, all sent to the same address “rP4X2…Kxv3”:
As the company developed, the company sent 200 million XRP into its reserves on December 1st. In addition, the payments protocol made two transactions of 60 million tokens each on December 6 and 12 and a payout of 120 million XRP on December 20. Finally, a deal for 70 million on December 27th.
Operation of the escrow system for unlocking
Ripple created XRP in 2012, total supply is limited 100 billion XRP. The company has distributed 20 billion XRP to the creators and core team.
The Treasury controlled the remaining 80 billion XRP and promised to release these coins gradually, rather than all at once. In 2017, Ripple implemented a new system to make the issuance of XRP more predictable and controlled.
This system uses escrow, a smart contract that locks XRP, making it impossible to use it until certain conditions are met. Ripple’s fortune was release 1 billion XRP on the first day of every month for 55 months.for a total of 55 billion XRP.
However, despite issuing 1 billion XRP monthly, Ripple has only spent or sold a few of them. Instead, Ripple is reportedly locking the remaining monthly tokens in new escrows for future releases. The repeated bans extended the 55-month start date for all XRP.
These sales represent an increase in the supply of XRP as unlocked tokens begin to circulate each month. In fact, Ripple can directly influence the economic dynamics of its token and its future price and value..