Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Other Popular Cryptos / Coins => XRP - Ripple Forum => Topic started by: Crypto Banglu on May 06, 2021, 03:09:04 PM
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“Mining” is the distributed verification system used by most blockchain-based cryptocurrencies. It both facilitates transactions and provides the mechanism by which new currency is introduced into a cryptocurrency system—typically as a reward to verifiers for their work supporting the network. For example, Bitcoin has a total supply limit of 21 million tokens that are steadily released as more and more transactions are verified,
Since Ripple doesn’t rely on a conventional blockchain, there is no need or way to mine XRP. Instead, Ripple the company decides when to release XRP, not unlike the way a company might issue stock.
Understandably, this has led to concerns that a lot of XRP could be released at once, diluting the value of other XRP already in circulation because part of what gives any currency its value is its comparative scarcity.
To help combat this, XRP currently has limited release to 100 billion pre-mined tokens, of which only about 45 billion are in circulation, as of April 21, 2021.
“The company has tried to reduce the uncertainty by implementing several mechanisms (trust, predictable release, etc.),” says Tim Enneking, principal of Digital Capital Management.
More Details
https://www.forbes.com/advisor/investing/what-is-ripple-xrp/#:~:text=Ripple%20is%20a%20payments%20settlement,the%20exchange%20went%20through%20properly