RippleX Exploring Native Staking of XRP for Enhanced Token Utility Translation: RippleX Exploring Native Staking of XRP for Enhanced Token Utility

The head of RippleX, Ayo Akinyiele, along with Ripple’s CTO, David Schwartz, have released preliminary outlines for implementing native XRP staking.

The leader of the XRP Ledger (XRPL) development team noted that this initiative stems from contemplation on enhancing the utility of the Ripple token through new opportunities.

“This made David and me ponder: what if we someday implemented native staking support on XRPL? What would that look like?” Akinyiele wrote.

He emphasized that the Ripple network was originally designed for fast and efficient on-chain value transfer, meaning its architecture is fundamentally different from that of Proof-of-Stake (PoS) blockchains.

According to Akinyiele, the implementation of staking requires:

Addressing these tasks would necessitate a fundamental restructuring of XRPL, he believes.

Currently, transaction fees on the network are burned to maintain a deflationary token supply. A pool to incentivize stakers could be formed from new fees related to programming features, Akinyiele suggested.

“Distribution also demands careful design. Staking alters the interaction between validators and participants, introducing financial incentives that might strengthen engagement, while also subtly shifting governance dynamics,” the developer added.

One of the XRPL validators compared PoS staking to a lottery that determines the next block producer, expressing doubts that a Proof-of-Association algorithm would fit into such processes. XRPL node operators function without financial incentives, do not compete for block inclusion, and the blockchain lacks a slashing mechanism—penalties for misconduct.

«There are two concepts. Both are technically impressive but are unlikely to be implemented in practice, at least not in the near future,» Schwartz responded.

One of the options he mentioned is transitioning to a two-tier consensus model. Only an internal circle of 16 validators, chosen by an external tier, would utilize staking/slashing.

Another path would be to maintain the existing consensus while using transaction fees to facilitate zero-knowledge proofs of correct execution by smart contract nodes. This would free nodes from having to perform complex, energy-intensive computations.

Schwartz pointed out that the realization of this initiative, along with the introduction of smart contracts, aims to enhance Ripple’s distributed ledger capabilities in the DeFi sector.

“XRPL was established in 2012. Since then, the blockchain landscape has undergone numerous transformations,” he stressed.

In October, Schwartz announced that he would step down as the company’s CTO by the end of the year.

Ripple’s CEO, Brad Garlinghouse, also urged the community to share their ideas regarding the potential future of the network in decentralized finance and the integration of other applications for XRP.

It’s worth noting that Matthew Sigel, head of digital asset research at VanEck, stated that XRP does not yield income for token holders, and that XRPL lacks real-world use cases.