The question of XRP's decentralization, a token issued by Ripple, has been a subject of active debate, especially following recent legal rulings. We review expert opinions and technical facts.
Why XRP Is Considered Centralized
Many critics argue that Ripple controls the XRP network due to its holding of 40% of the total token supply. However, this view is a misunderstanding since owning tokens does not equal control over the network. As noted by notable crypto attorney John E. Deaton:
> "75K XRP holders from 143 countries around the globe is pretty darn decentralized to me. People often conflate the token of the network with the network itself."
Ripple's Legal Win Clarifies XRP's Status
Debate around XRP's centralization intensified due to the SEC lawsuit that began in 2020. The court concluded the case on May 8, 2025, confirming that XRP is not a security when traded in secondary markets, thereby reinforcing its status as a decentralized digital asset. This ruling also bolstered investor confidence.
Technical Aspects of XRP's Decentralization
Several technical features of the XRP Ledger support its decentralized nature:
1. Independent Validators. - The XRP Ledger runs on a consensus model with over 150 independent validators. - Ripple controls only one validator, preventing it from making changes or manipulating the network.
2. No Centralized Mining. - XRP does not use proof-of-work, avoiding mining pool control and ensuring equal participation from validators.
3. 80% Consensus Required for Changes. - Any update to the XRP Ledger requires 80% validator approval for two consecutive weeks, making unilateral control by Ripple impossible.
The long-standing debate over XRP's centralization is finally being resolved thanks to legal and technical facts. With 75,000 holders worldwide and over 150 validators, XRP proves its decentralized nature.
