Ripple is changing its XRP unlock strategy, potentially leading to the faster depletion of its 36.4 billion token escrow within six years.
XRP Unlock Strategy
Recent changes in Ripple's escrow program indicate a possible faster depletion. In July, the company unlocked 1 billion XRP in two phases. First, 500 million tokens were released on July 1, followed by another 500 million on July 4. Of the total unlocked amount, only 700 million returned to escrow, while 300 million entered circulation to support ODL services and other initiatives.
Flexibility in Distribution Approach
According to XRPwallets, a known figure in the community, Ripple's shift in release behavior could accelerate the depletion of the remaining 36.4 billion XRP in escrow. At the current rate of 300 million XRP released monthly, the supply could last for another 10 years. However, if Ripple increases its monthly releases to 400 million starting in 2026, the escrow could run dry in just 7.5 years.
Market Implications for XRP
Ripple's new approach to unlocking and only partially returning to escrow signifies a transition to a more flexible model that accounts for actual market demand. This change could enhance the availability of XRP in the market, which might impact liquidity and value in the future. If current trends continue, the entire escrow could be depleted much sooner than previously expected.
Changes in Ripple's XRP unlock strategy could significantly alter the structure of the escrow and greatly impact the cryptocurrency market.
