On the first of every month, Ripple unlocks 1 billion XRP tokens from an escrow system programmed within the XRP Ledger. So, we’ll be fixated on a big unlock event tomorrow. This transaction will occur again in three parts of 100 million, 400 million and 500 million XRP.
Attention: Ripple will perform a massive unlocking operation!
cryptokoin.com As you follow from , on the first of every month, Ripple holds a big unlock event. This time, it will unlock a token stack of 53.56 billion XRP in the November 2023 unlock. This chunk amounts to 1.86% of the current circulating supply. It also makes up a portion of the 46.43 billion XRP tokens owned by Ripple, which remain locked in escrow to be released monthly until April 2027. Three escrows held by two crypto wallets under Ripple’s control will be finalized in the last minutes of October 31. These are the following addresses:
- Address “Ripple (22)” – will unlock 100 million XRP locked on September 03, 2019 with transaction ID “7EF17…CDA6F”.
- Address “Ripple (22)” – It will unlock 400 million XRP locked on August 01, 2019 with transaction ID “E0D06…DA8EA”.
- Address “Ripple (23)” – It will unlock 500 million XRP locked on September 03, 2019 with transaction ID “0ECCB…F84E3”.
These two addresses still have 4 billion XRP tokens available for monthly escrows that will be opened over the next four months until March 1, 2024.
What was the impact of the 1 billion XRP launched in October?
As expected, Ripple unlocked 1 billion XRP worth $550 million on October 1. Ripple immediately re-locked 800 million (80%) of the total in escrows to be completed by March and April 2027.
Notably, despite holding 200 million XRP, the company spent 205 million tokens ($112.75 million) from its main address, “Ripple 1,” in October. For this, Ripple used 5 million XRP in its balance from the past months. Sales occurred weekly in three transactions, all sent to the same address, ”rJqiM…La8nE”:
- 60 million XRP payment via transaction ID “AFAB4…1FF48” on October 9
- On October 16, 75 million XRP payment via transaction ID “2B333…81843”.
- 70 million XRP payment via transaction ID “BDBE1…97B07” on October 24th.
How does the escrow system work to unlock Ripple locks?
Ripple created XRP in 2012 with a total supply of 100 billion XRP. The company then distributed 20 billion XRP to the creators and core team. Ripple’s treasury controlled the remaining 80 billion XRP. He also promised to launch these coins gradually and not all at once. In 2017, Ripple implemented a new system to make the issuance of XRP more predictable and controlled.
This system uses escrows, a smart contract that locks XRP and makes it impossible to use it unless it meets certain conditions. Ripple’s condition was to release one billion XRP on the first day of each month for 55 months, for a total of 55 billion XRP. However, despite a billion XRP being released monthly, Ripple spent or sold only a fraction of them. Instead, Ripple locks remaining tokens each month into new escrows for future releases. Thus, repeated relocks extend the 55-month period for all XRP to enter circulation.