Coinspeaker XRP Ledger Slashes Reserve Requirement by 90%, Making Wallets More Accessible
The long-anticipated wait for the XRP Ledger to reduce its base reserve requirement is finally over. This follows after a notable change was observed on the ledger on December 2, 2024.
According to blockchain data, the base reserve dropped by a whopping 90%. That is, from 10 XRP ($25.60 at current prices) to just 1 XRP ($2.56). The implication of this is that new users may now create wallets without having to break the bank for it.
For XRP Ledger, this decision to lower barriers for new users on the network also frees up funds it previously held in reserve.
Similarly, the owner reserve, which applies to objects like NFTs and trust lines in user accounts, has also decreased. It went from 2 XRP ($5.12) to 0.2 XRP ($0.51), offering users more flexibility in how they use their digital assets.
According to an XRP validator, known as “Operator V” on the X platform, who first observed the reserve adjustment, it took place at 10:45 pm. UTC.
Major Changes to XRP Reserve Policy Aim to Drive Adoption
From all indications, the recent changes appear to be the result of a concerted effort from XRP Ledger developers and validators, alongside XRPL Labs.
It all started when developers began to weigh the advantages and disadvantages of lower reserves as opposed to higher ones.
On October 16, XRP Ledger developer WietseWind shared that all nodes controlled by the XRPL Labs development team had been reconfigured to process a lower reserve requirement. However, the change required both a validator vote and a network-wide reset.
Now that the change has been implemented, it appears that it is a general belief that the benefits of this change outweigh its potential risks. This is bearing in mind that risks such as increased ledger activity possibly straining the infrastructure would likely result from this.
As WietseWind has acknowledged, that might even be a “good problem” because it also means rising adoption. Moreover, the developers look like they are fully aware of the possible challenges but remain confident in the ability of their engineers to manage whatever situation that may arise.
It might also be worth noting that the XRP reserve requirement was originally introduced to prevent spam accounts and maintain the ledger’s efficiency. However, for long, critics saw the 10 XRP base reserve as a huge discouragement to adoption, especially for new users.
Hopes Up as Token Performs
Interestingly, this reserve cut comes at a time when there is growing interest and optimism around the XRP XRP $2.52 24h volatility: 6.0% Market cap: $143.07 B Vol. 24h: $45.49 B . The coin recently surged to $2.65, its highest value since 2018.
Notably, this surge is primarily attributed to the anticipation surrounding XRP’s use cases. It has also been established that there’s a possible link between XRP’s steady increase in value and Ripple Labs’ ongoing legal battle with the US Securities and Exchange Commission (SEC).
Be that as it may, lowering the reserve will undoubtedly help XRP Ledger to attract more participants while maintaining a balance between usability and infrastructure stability.
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XRP Ledger Slashes Reserve Requirement by 90%, Making Wallets More Accessible
