• David Schwartz, the chief technology officer of Ripple and one of the architects of the XRP Ledger, offered his insight on the XRP supply.
• He regrets not distributing more XRP when prices were low and believes that the current influx of tokens is making things more challenging.
• Schwartz believes that all tokens should be released into the market while the price is at its lowest, as Americans receiving the tokens would be subject to regular income tax.
David Schwartz, the chief technology officer of Ripple and one of the architects of the XRP Ledger, recently offered some unique perspectives on the XRP supply and token distribution. His comments were sparked by a discussion about cryptocurrency inflation and a recent airdrop of the FLR token from Flare Network.
Schwartz expressed dismay that Ripple did not give more tokens when the price of XRP was low. He believes that things have become significantly more challenging as a result of the massive rush of tokens that have entered the market now that the price of XRP is at $0.4. According to Schwartz, this is one of the reasons why all tokens should be released into the market while the price is at its lowest.
One of the issues that Schwartz raised is that Americans receiving the tokens would be subject to regular income tax, which would require them to sell about 50% of the tokens when they receive them. This could have a negative effect on the token’s market value and could potentially lead to an oversupply of tokens.
Schwartz also noted that the XRP in the escrow belongs to Ripple, a for-profit corporation, and that there is no community ownership or voting involved. This is in contrast to the Flare airdrop, which is intended to benefit the ecosystem by giving the community a chance to vote on its use.
Overall, Schwartz’s opinion on the XRP supply and token distribution is an important one that should be taken into consideration. By releasing tokens into the market when the price is at its lowest, it could help to ensure that the token’s market value is not affected by income taxes, and it could also help to protect the community’s interests.