The XRP Ledger has a mechanism called XRP burning, where a small fee in XRP is permanently removed from circulation with every transaction, including those involving Ripple's stablecoin RLUSD. This mechanism helps maintain the efficiency and stability of the network by preventing spam and congestion. The fee levels are set by validators and can change based on network activity. RLUSD transactions also require XRP fees to be processed, ensuring the burning mechanism is not bypassed. While RLUSD's increasing transaction volume may lead to small reductions in XRP's total supply, it is estimated to only burn around 0.0075% annually. Despite this, if RLUSD can establish its presence in the growing stablecoin market, it may contribute to the long-term dynamics of XRP within the XRP Ledger ecosystem.



Other News from Today