Ripple’s chief technology officer, David Schwartz, recently shared his thoughts on the XRP supply and its potential impact on the market. The discussion was prompted by a question about cryptocurrency inflation and the recent Flare Network’s token, FLR, airdrop.
Schwartz expressed regret that Ripple did not distribute more tokens when the XRP price was low. In his view, the influx of large numbers of tokens into the market now that the XRP price is already at $0.4 makes things much more difficult. He also pointed out that for U.S. recipients, this would be taxed on ordinary income, forcing them to sell around 50% when they receive the tokens.
Schwartz’s main point is that the release of all tokens into the market should be done while the price is at its lowest. This way, the tokens can be distributed more evenly among a larger number of people, and it would also be more tax-efficient for the recipients.
It’s worth noting that Ripple currently holds 43.4 billion XRP in its accounts, according to the XRP Ledger Services portal. This is a significant portion of the total XRP supply, and it’s important for the company to consider the potential impact of releasing more tokens into the market.