Recently, Ripple has made a notable move by re-locking 800 million XRP ($400 million) out of the 1 billion XRP tokens that were unlocked on September 1. This monthly token unlocking has been a recurring event since 2017, allowing Ripple to introduce new tokens into circulation. However, this time, Ripple has chosen to retain a significant portion of the unlocked tokens in escrow, which could potentially impact the token’s price in the short term.
Ripple’s Unusual Move: Re-Locking XRP
Typically, when 1 billion Ripple’s tokens are unlocked each month, Ripple has the discretion to decide how many tokens to release into the market. In September, Ripple took an unusual step by re-locking 800 million tokens, which accounts for a substantial 80% of the unlocked total. This decision leaves Ripple with 200 million XRP ($100 million) that can be deployed into the market whenever the team sees fit.
Read more: Ripple Challenges SEC’s Appeal, Citing Insufficient Grounds
The Transaction Details
The transaction details shed light on Ripple’s strategic move. The 1 billion was unlocked by two known Ripple accounts, Ripple 22 and Ripple 23, in four separate transactions. From Ripple 22, 200 million XRP was transferred to Ripple 1, allowing it to remain liquid and available for the team to use at their discretion. Another 300 million XRP from Ripple 22 was sent to Ripple 10, which is now locked in an escrow program set to expire by February 2027.
Read more: XRP’s Trading Volume Surges
Interestingly, Ripple 23 sent the entire 500 million XRP unlocked directly to Ripple 11. These tokens have now been re-locked in a new escrow program that is programmed to reach finality by January 2027.
Conclusion
Ripple’s decision to re-lock a substantial portion of the recently unlocked XRP tokens has drawn attention in the crypto community. By retaining 800 million XRP, Ripple has signaled its intention to exercise caution and potentially control the supply of XRP entering the market. This strategic move could have implications for the short-term price of XRP, as well as broader implications for Ripple’s plans and the XRP ecosystem. As the cryptocurrency landscape continues to evolve, such decisions by major players like Ripple are closely watched by investors and enthusiasts alike.
