In a significant potential advancement for the XRP Ledger (XRPL), Ripple developer J. Ayo Akinyele, with support from the firm’s Chief Technology Officer David Schwartz, has proposed the idea of integrating native staking.
This concept aims to enhance rewards within the XRPL, particularly as XRP’s adoption increases through mechanisms such as digital asset treasuries (DATs) and focused exchange-traded funds (ETFs) centered on the token.
Akinyele emphasized the significance of this idea within the XRPL context, where it would challenge some established design principles.
At present, transaction fees are intentionally burned, a deliberate strategy that maintains a deflationary supply and ensures network efficiency.
Introducing staking would necessitate a reevaluation of value circulation within the system and seek a sustainable method to reward participation. For instance, any new fees related to programmability could be allocated to a rewards pool.
Ensuring that these incentives and corresponding penalties are well-balanced, according to Ripple’s developer, will be vital to maintaining fairness and resilience within the network.
Although the concept of native staking offers appealing possibilities, Akinyele believes the real concern is how these rewards align with the existing Ledger design.
Additionally, organic experimentation with staking and yield programs is already occurring in the community through various exchanges and DeFi protocols, such as Uphold/Flare, Doppler Finance, Axelar, and MoreMarkets. Akinyele further noted:
Whether or not native staking ever belongs on the network, exploring the idea reinforces the fact that XRP’s purpose isn’t singular or static. As the ecosystem grows, conversations about incentive models, fairness, and governance help ensure that XRP continues to serve as a connective asset in open, efficient financial systems.
Given the ongoing discussions about programmability and smart contracts, he suggested that the XRP community should explore what other DeFi capabilities could emerge natively on the Ledger. This hints at the possibility of fulfilling Akinyele’s staking proposal.
Featured image from DALL-E, chart from TradingView.com
